Mergers, Acquisitions and Financial Results

Orascom Telecom, a branch of a large Egyption conglomerate, this week made a bid for shares held by controllers in Brasil Telecom Participacoes, Brazil's third largest telecom, said the local Folha de S. Paulo newspaper Friday.

According to the report, Orascom made offers to each of the four major shareholding groups in Brasil Telecom, Citigroup, a group of local pension funds, Telecom Italia and Brazil's Banco Opportunity.

Brasil Telecom is a fixed-line operator in the north, center-west and south of Brazil. It also offers wireless services.

According to the report, the Orascom offer caught Citigroup and the pension funds, the currrent controllers of Brasil Telecom by surprise. That's because last week they had offered $450 million for Telecom Italia's shares, according to executive linked to Telecom Italia.

The Folha de S. Paulo goes on to say that Orascom may have made a bid for Citigroup and the funds' share in Tele Norte Leste Participacoes, or Telemar, Brazil's biggest telecom company.

Dow Jones Newswires