Telemar (Brazil) acquires Brasil Telecom

Telemar Norte Leste SA acquires Brasil Telecom Participacoes from Zain Participacoes SA
Telemar Norte Leste SA (Telemar), a majority owned unit of Tele Norte Leste Participacoes SA, raised its stake to 81.09% from 38.79%, by acquiring the remaining 42.3% economic stake or 153.292 mil preferred shares, in in Brasil Telecom Participacoes SA (Brasil), a Brasilia-based provider of telecommunications services, from Solpart Participacoes SA, a unit of the Techold Participacoes Ltda's Zain Participacoes SA's Invitel SA unit, for a total value of BRL 4.461 bil (USD 2.677 bil). Telemar offered .0715714 ordinary shares and .2304758 preferred shares per Brasil preferred share. Based on Telemar's closing ordinary stock price of BRL 110 (USD 66.007) and preferred share price of BRL 92.12 (USD 55. 278) on 24 April 2008, the last full trading day prior to the announcement, each Brasil preferred share was valued at BRL 29.104 (USD 17. 464).