ADRs in Focus: Telebras down on deal, Ternium off on threat

The Bank of New York Telebras ADR index lost 4.32 points, or 4.5 percent, to 90.83. ADRs, or American Depositary Receipts, are securities that allow shares of foreign companies to trade on U.S. markets.

On Friday, Oi whose formal name is Tele Norte Leste Participacoes SA said it was buying Brazil's No. 3 fixed-line phone company in a deal that would give the combined company about 17 percent of Brazil's rapidly growing mobile phone market.

Investors pulled back following the news. Oi lost $2.16, or 8.7 percent, to $22.90. Brasil Telecom shed $5.63, or 7.2 percent, to $72.50.

Meanwhile, Tele Norte Celular Participacoes SA lost 58 cents, or 2.3 percent, to $17.82. Tim Participacoes SA fell 46 cents to $32.83. And Telemig Celular Participacoes SA gave up 61 cents to $66.47.

Elsewhere in the Latin American ADR market, shares of Ternium SA lost ground after Venezuelan President Hugo Chavez threatened to expropriate its subsidiary.

Earlier this month, Chavez announced plans to nationalize No. 1 Venezuelan steel maker Sidor, a subsidiary of Luxembourg-based Ternium. The company has requested $4 billion in exchange for a 60 percent stake, a suggestion that Chavez dismissed on Sunday and followed with a threat of outright takeover.

A final meeting between Ternium and the government was scheduled for Monday. Shares of Ternium lost $1.78, or 5 percent, to $33.97.

Broader ADR markets were higher Monday afternoon. The Bank of New York Latin America ADR Index gained 1.02 points to 455.27.

The Bank of New York Composite ADR index added 0.79 points to 182.25. while U.S. market rose.