Brazil Clears way for Telemar-Brazil Telecom Tie-up

The Brazilian government has cleared the way for Telemar Participacoes’ BRL5.86bn takeover of Brasil Telecom. Telecom regulator Anatel approved changes to regulations at a meeting in Brasilia that end a prohibition on the controlling shareholders of Brazilian telephone companies from owning a phone carrier in another region of the country, on which the deal hinged. Telemar has issued BRL4.3bn in 8-year CCB bank notes at DI plus 180bp, and placed BRL3.6bn in 1-year paper at DI plus 160bp to fund the purchase. It was last heard looking at the Brazilian loan market to complete the financing, after pulling a $1.5bn bond in September.