Telemar Preferred Shareholders Reject Share Swap

Preferred shareholders of Brazil’s largest fixed-line telecoms operator, Telemar, have voted against the company’s proposed capital restructuring claiming it would be against their interests. In April the company revealed it was to restructure its share capital and unite stock from its various companies into a single class of new voting shares. Two previous meetings, slated for November 13 and then November 24 were both cancelled for lack of quorum. The vote by preferred shareholders was in line with a ruling earlier this year by CVM, Brazil’s securities regulator, that only shareholders of preferred stock may vote on proposals to reorganize companies because of conflicts of interest.