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BrOI: Material Events

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Telecom is strategic: Brasil Telecom. Click to zoom.

“BrOI”: BrT e Oi/Telemar formalizam reestruturações societárias: “BrT and Oi/Telemar formalize restructuring plans.”

Convergência Digital is the first to note the first public signs of progress toward the Brasil Telecom-Oi merger: A series of Material Events published with the securities regulator minutes before midnight on a pre-holiday Friday.

O feriado de Tiradentes foi bastante movimentado para o batalhão de advogados da Brasil Telecom e da Oi/Telemar que trabalham para viabilizar a fusão das duas concessionárias, pelo menos do ponto de vista de mercado, uma vez que no setor, a fusão só poderá acontecer com a mudança do atual Plano Geral de Outorgas – já em revisão oficial pela Anatel.

The Tiradentes holiday was pretty busy for the battalions of lawyers fielded by Brasil Telecom and Oi/Telemar, working to make the merger of the two concessionaires possible — possible, at least, from the point of view of the market, given that the merger ultimately depends on an amendment to the current General Concession Plan (PGO) — currently under official review by Anatel.

Anatel assigned the case to the board member who will study and make recommendations late last week — contradicting reports that a conclusion would be forthcoming by week’s end. This story, journalistically speaking, is lousy with anonymously-sourced bright certainties that end in failed prognostications.

No sábado dia 19/04, parte da reestruturação societária das duas operadoras – envolvidas com brigas e desavenças de acionistas – foi oficializada. Nos informes, reproduzidos abaixo pelo Convergência Digital, as duas operadoras assumem que o acerto entre os acionistas foi determinado para “simplificar e aumentar a transparência e a otimização da estrutura organizacional atual”.

On Saturday, April 19, part of the corporate restructuring plan for the two operators — who are involved in disputes and fallings-out among their shareholders — was formalized.

The reference date on the documents is Friday, April 18, which is presumably when the accords were formalized. April 19 is the disclosure date.

In the disclosure statements, reproduced below, the two operators report that the shareholder agreement was undertaken in order to “simplify, optimize and render more transparency the current corporate structure.”

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CSN Will Sell Stake in NAMISA

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The Brazilian mining sector is the focus of intense activity lately (as you probably know better than I do.)

In a celebrated case, the owner of a family-held iron mine in Minas Gerais recently sold out to Usiminas in a deal that could be worth as much as US$1 billion, or more.

The owners of the mine had done little with it over the years beyond the production of pig iron for local industry (one of the businesses most associated with “labor conditions tantamount to slavery” in Brazil, although I know of no accusations of the kind against this particular operation, mind you.)

Relatório Reservado suggested today this will not be the last deal of its kind in the region:

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Oops, that was not the news item I subscribed, for a healthy fee, to read, and managed to log in and read earlier today.

Why does anyone even bother using ASP to develop Web sites, I sometimes wonder?

In a related story disclosure statement to the Bovespa today:

A Companhia Siderurgica Nacional vem informar que contratou a Goldman Sachs para atuar como sua assessora financeira na potencial venda, parcial ou total, de sua participacao societaria na Nacional Minerios S.A. (“NAMISA”).

CSN discloses that it has hired Goldman Sachs to act as its financial adviser on a potential sale, partial or total, of its equity stake in Nacional Minerios S.A. (“NAMISA”).

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JBS: Banking on the Boi Zebu?

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“Delay in issuing federal corporate taxpayer ID leads to emergence of black market”

The top story in the Gazeta Mercantil today is a puzzling non sequitur.

São Paulo, 22 de Abril de 2008 – O frigorífico JBS-Friboi, o maior do mundo, desistiu de anunciar na semana passada, em coletiva de imprensa, que possui autorização do Banco Central para ter um banco, notícia antecipada pela Gazeta Mercantil, pois continua sem o Cadastro Nacional da Pessoa Jurídica CNPJ da Receita Federal, que deve sair em ao menos 30 dias. Por situações como esta, surgiu um mercado paralelo de CNPJ, com a criação de negócios- fantasma colocados à disposição de quem não quer ou não pode esperar pelo prazo normal de constituição de uma empresa.

Meatpacker JBS-Friboi, the largest in the world, abandoned plans last week to announce in a press conference that it has authorization from the Central Bank to operate a bank of its own, as the Gazeta Mercantil had reported.

This because it still awaits the issuance of CNPJ (national corporate taxpayer registration number) by the federal tax authority, which will take at least 30 days. In situations like this, a parallel market has arisen in CNPJs, with shell corporations offered to companies that cannot or would rather not wait for the normal time it takes to form a new company.

In other words, the Gazeta says that it was wrong to report that JBS would make that announcement, and then launches ingto a story on another subject entirely: the “emergence” of a black market in corporate taxpayer IDs.

Which has precisely what to do with JBS, the biggest Brazillionaire conglomerate and new owner of several North American meat companies, including the Swift brand? (The Missouri attorney general is suing to roll back the company’s most recent acquisitions in the United States.)

Or with the fact that the Gazeta appeared to have gotten the story wrong and ought to issue a “regret the error”?

The Batistas and their quest for a commercial banking license has some interesting back story to it — including a 2005 leaked wiretap of the company’s president used to back charges that the company was engaged in collusion to fix prices.

The Gazeta had reported (April 14)

After strengthening ties with world food giant Tyson Foods, Brazilian meatpacker JBS-Friboi, the largest in the world, has received authorization to operate a financial institution. JBS Banco S.A. starts out with initial capital of R$30 million and is licensed to engage in credit and commercial banking transactions and investments. With Central Bank autorization, JBS is the first meatpacker to have its own bank — Sadia is still awaiting authorization. In other sectors, Embratec, Marisol, Randon, Tigre and Paquetá have also applied.

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