When the Brazilian telecommunications telephone company “Oi” announced that Zeinal Bava was about to step up as the new CEO, the stock markets didn’t take long to react accordingly. The news came out on June 3 and right the day after, Oi shares immediately raised 20.74%. The Portuguese CEO, who was recently ranked as the 5th best CEO in Europe thanks to his work on “Portugal Telecomunicações” (PT), was born in Maputo (Mozambique), in 1965. His family ended up moving to Portugal in 1975, following the famous Portuguese revolution of April 25, in 1974.
The 46-year old businessman is coming over to Brazil to replace José Mauro Mettrau Carneiro da Cunha, who had been in charge as the company’s caretaker administrator since the sudden departure of Francisco Valim, last January. The announcement took place during a period where there were some concerns being raised by groups of investors, who were doubting that the company could still deliver in 2015 the results that they have been promising. Moreover, there has also been some debate about the group’s high debt level, which has left “Oi” in a delicate position.
However, this clear positive reaction verified by the stock markets on the day after to the announcement, has quickly been dissipated over the following days and weeks. Oi shares had already returned to their “normal” value last Friday (roughly 2 weeks after the trigger event), with stocks being traded only 3.19% above the value they had before the announcement.