BRASILIA, July 11 The Brazilian government does
not see a merger between Grupo Oi SA and Portugal
Telecom SPGS SA at risk, following tension between the
companies over Portugal Telecom's debt deals with troubled Banco
Espírito Santo SA, three sources with knowledge of the
situation said on Friday.
The sources, who declined to be identified because of the
sensitivity of the issue, said the government is monitoring the
situation from afar. The Brazilian government has been a major
sponsor of the merger since it was devised last year.
In recent days, Oi and state development bank BNDES have
lashed out at Portugal Telecom for failing to disclose an
investment in the holding company of a key shareholder under
investigation in Luxembourg.
(Reporting by Leonardo Goy; Writing by Guillermo Parra-Bernal;
Editing by Jonathan Oatis)