Caixa Geral de Depositos would be selling a stake it holds in Portugal Telecom in a deal worth EUR 196 million or USD 270 million. According to a regulatory filing, state-owned Caixa Geral would be selling an estimated 6.11% stake it holds in Portugal Telecom. As of June, Caixa Geral held a 6.31% stake in the Lisbon-based telecommunications firm. Because of the sale, trading of the shares have been suspended in the Lisbon bourse.

Caixa Geral would be selling its stake via an accelerated book building. According to the terms of the offer seen by Bloomberg News, the shares would be offered at EUR 3.45 to EUR 3.583 apiece. The share sale would be jointly managed by Caixa Banco de Investimento and Credit Suisse.

This month, telecommunications firms Portugal Telecom and Brazil-based Oi agreed on a merger. The trans-Atlantic carrier that would be created from the merger would be able to compete against rivals Telefonica and America Movil.