LISBON Aug 7 Henrique Granadeiro, the chief
executive officer of Portugal Telecom SGPS, resigned on
Thursday, the company said, three weeks after it was forced to
take a cut in its share of a merger with Brazil's Oi due to a
debt deal that went wrong.
Portugal Telecom had failed to inform its Brazilian merger
partner Oi that it held 900 million euros in debt
issued by a holding company of the crumbling business empire of
Portugal's Espirito Santo banking family.
The holding defaulted on the debt last month and Portugal
Telecom was forced to accept a lower stake in the new merged
company with Oi. Portugal Telecom also said on
Thursday its executive board had never approved any investment
in that debt. It contracted PWC to audit all investment in the
Espirito Santo Group debt made by Portugal Telecom.
(Reporting By Andrei Khalip, editing by David Evans)