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The merger is in some ways akin to throwing a lifeline toPortugal Telecom, which has suffered in recent years along witha flagging Portuguese economy. Bava must also fix Oi's complexshareholder structure, cut debt at both companies and figure outhow Oi can cope with the demands of a Brazilian market that maybe ripe for consolidation. Telefonica agreed to up its stake inTelecom Italia recently.
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