NEW YORK (TheStreet) -- Shares of Oi SA (OIBR) were gaining 6.9% to $2.01 on heavy trading volume Wednesday following the announcement that the Brazilian telecommunications company hired Credit Suisse (CS) to sell its call centers.
The call centers account for 11% of the company's total workforce, according to Bloomberg. The sale would be the company's largest asset sale as it tries to decrease its leverage and rebuild credibility.
Oi CEO Bayard Gonjito told Bloomberg the company is trying to position itself as a stronger candidate for consolidation which it's a buyer of a seller.
"What we want for the future is to regain our investment grade," Gontijo said. "We have to work doing structural changes, transforming the business, selling assets, reducing the leverage. It's a process."
About 7.4 million shares of Oi were traded by 12:23 p.m. Wednesday, above the company's average trading volume of about 2.8 million shares a day.
TheStreet Ratings team rates OI SA as a Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate OI SA (OIBR) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, generally high debt management risk, disappointing return on equity and generally disappointing historical performance in the stock itself."