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Indicate by check mark whether the registrant by furnishing the
information contained in this Form is also thereby furnishing the
information to the Commission pursuant to Rule 12g3-2(b) under
the Securities Exchange Act of 1934.

Yes ______ No ___X___

 

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Free Translation

BRASIL TELECOM S.A.
Publicly Traded Company
Corporate Taxpayer Registration CNPJ/MF Nº 76.535.764/0001 -43
Board of Trade NIRE 53 3 0000622 9


Notice to Shareholders

Brasil Telecom S.A. hereby forwards letter received on July 18^th, 2006 from PETROS - FUNDAÇÃO PETROBRÁS DE SEGURIDADE SOCIAL in compliance with notice CVM/SEP/GEA-4/Nº351/06, issued by CVM – Brazilian Securities and Exchange Commission on the same date.

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PRES-161/2006

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Free Translation

Brazil, Rio de Janeiro, July 18^th, 2006.

Mr.
Jorge Luís da Rocha Andrade
Company’s Attendance Manager – 4
From CVM – Comissão de Valores Mobiliários (Brazilian Securities and Exchange Commission)
Rua Sete de Setembro, 111 – 2º andar
Rio de Janeiro – RJ
Fax #: 55 21 3233-8570

CC.: Mr. Charles Laganá Putz
       Brasil Telecom S.A.’s IRO
       Fax #: 55 61 3415-1237

Subject: Answer to notice CVM/SEP/GEA-4/Nº 350/2006, dated July 17, 2006

Reporting to notice CVM/SEP/GEA-4/Nº 350/2006 sent by CVM – Comissão de Valores Mobiliários (Brazilian Securities and Exchange Commission) on July 17, 2006 in which the Autarchy requests Brasil Telecom S.A.’s position, forwarded by Petros, regarding the article entitled “Brasil Telecom’s sale could occur in 6 months” published by Jornal do Commercio in the same date, in which Petros’ (Fundação Petrobras de Seguridade Social) makes statements regarding the possible sale of the Company by Petros, Citibank and Pension Funds, as transcribed bellow:

	[...] we are already dealing with the sale of Brasil Telecom, mainly with Telecom Italia. I am optimistic. Petros is a selling part along with Citibank and other pension funds (by put agreement until the end of 2007) and we expect to have a good operation within the next six months, however, no values have been established yet.

 

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PRES- 161 /2006

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Fundação Petrobras de Seguridade Social (Petros) clarifies that the article herein referred to has mentioned facts that have been conveyed by the press on several occasions, being well-known the intention of Brasil Telecom’s controlling shareholders to negotiate its participation in the Company. Therefore, they have had conversations with potential buyers, amongst which Telecom Italia, not having, however, until the moment, any agreement, even preliminary, that can characterize a material fact to be disclosed to the market. The reference to the “expectation… in the next six months” was only a conjecture to show Petros’ optimism, indicating the recognition of the effort of Brasil Telecom’s current management to promote the appreciation of the Company, and, in the case that a sale occurs, it will follow all formal and legal proceedings required by CVM, SEC and ANATEL.

Ricardo Malavazi Martins
CEO in exercise

RUA DO OUVIDOR 98 CEP 20040-030 RIO DE JANEIRO RJ TEL (21) 2506-0588 FAX (21) 2506-0570
e-mail :petros@petros.com.br homepage: www.petros.com.br

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