The merger of Oi SA and Portugal Telecom SGPS SA would form an ownership structure that would be much simpler for the largest phone company in Brazil. The move is designed to give more options for the company under CEO Zeinal Bava.

Bava said, during an interview on Bloomberg TV's 'The Pulse', "As we are today, it is impossible for us to actually play any kind of consolidation game, so I think this is the first step that we need to put in place. (The union) wil certainly open up options for the company for the future."

The Rio de Janeiro based Oi had agreed to enter into a a merger agreement woth Portugal Telecom yesterday. This would create a trans-Atlantic carrier with over 100 million customers, providing more competitiveness as against Telefonica SA and America Movil SAB. The merger would be done through one class of shares as compared to the current structure where shareholdings are done through a combination of clases and several holding firms having ownership of shares over the company.