(NYSE:
OIBR) said that Oi, Portugal Telecom SGPS S.A., AG Telecom Participacoes S.A., LF Tel SA, PASA Participacoes S.A., EDSP75 Participacoes S.A., Bratel Brasil S.A., and also certain shareholders of Portugal Telecom, have entered into a memorandum of understanding establishing the basis and principles that will govern the negotiations of a potential transaction to form a combined entity (CorpCo).