By Jeffrey T. Lewis
SÃO PAULO--Telefonica Brasil's shares rose 2.4% after Brazil's telecoms regulator approved a proposed capital reduction.
Shares of Vivo, as the company is known, reached 44.31 reais, the equivalent of $9.14, and were up 13% from the end of last year through Friday's close. Brazil's benchmark Ibovespa stocks index was up 0.4% in midday trading.
The capital reduction of up to BRL5 billion, approved earlier this year by the company's board of directors, is a great mechanism for Vivo to boost shareholder remuneration, analysts at BTG Pactual said in a research note.
If shareholders approve the reduction, a creditor opposition period of 60 days begins, and after that the company can decide when and how payments to shareholders will be made, the analysts said.
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(END) Dow Jones Newswires