Oi, Claro, Vivo to launch EUR 10 bln TIM Brasil bid - report

News General Brazil 8 SEP 2014
Oi, Claro, Vivo to launch EUR 10 bln TIM Brasil bid - report

Brazilian operators Oi, Claro and Vivo are set to launch a BRL 30 billion (around EUR 10 billion) takeover bid for TIM Brasil by 30 September, according to unnamed sources cited in Brazilian daily O Estado de Sao Paulo. Oi last month released a statement confirming that it had hired BTG Pactual to examine the possibilities of bidding for TIM Brasil, but rival operators Vivo, controlled by Telefonica, and Claro, controlled by America Movil, are set to confirm their interest "in the next few days", according to one of the sources. 

They aim to agree a deal before the upcoming spectrum auction in Brazil late this month. They are unlikely to have equal stakes in the bid, in part due to regulatory concerns. America Movil is expected to get the highest percentage, according to the report. 

The fate of TIM Brasil, the local unit of Telecom Italia, remains uncertain after the Italian company’s plan to buy Brazilian broadband operator GVT and merge it with TIM Brasil failed after GVT parent company Vivendi opted for exclusive talks with Telefonica. Although Telecom Italia’s CEO Marco Patuano stressed that TIM Brasil remained a core asset, he said the company would consider selling its  stake if the price was right. Telecom Italia’s second largest shareholder, Marco Fossati, last week told Reuters that TIM Brasil should be valued at around 11 times core earnings, or twice its current market value of EUR 10 billion.

Categories:

General

Companies:

Telecom Italia,  America Movil,  Claro,  GVT,  Oi,  TIM Brasil,  Vivo,  Telefonica

Countries:

Brazil,  Italy

Tags:

Production planning & operations, M&A buyouts & divestments, Market research

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