Brazilian telco Oi is open to all options which would create value for its shareholders, its CEO Bayard Gontijo has reportedly said.
He pointed out that management has no prejudices about the structure of a deal, hinting at the fact that it could be…
Brazilian telco Oi is open to all options which would create value for its shareholders, its CEO Bayard Gontijo has reportedly said.
He pointed out that management has no prejudices about the structure of a deal, hinting at the fact that it could be involved in an M&A transaction as a buyer or a target, Reuters reported.
The remarks were in response to an earlier Reuters report citing a source, which suggested that an Oi-led consortium including America Movil’s Claro and Telefonica’s Vivo could make a joint bid for Telecom Italia (TI)-owned TIM Brasil, as first rumoured in October last year.
Investment bank BTG Pactual, which was hired by Oi last year to look into a potential bid for TIM, is reportedly advising the group.
America Movil declined to comment, while Oi and Telefonica did not reply to a request for comment.
Last week, Oi’s €7.4bn sale of PT Portugal to telecoms holding Altice was finally approved by the shareholders of PT SGPS, which holds a 25.6% stake in the Rio de Janeiro-based telco.
The sale proceeds are expected to enable highly-leveraged Oi to take part in Brazil’s consolidation process.
Brazil-based Credit Suisse analyst Andrew Campbell said last week that, once completed, the deal could pave the way for a merger between Oi and TIM as a more permanent solution to Oi’s stretched balance sheet and strategic challenges.
TIM, which ranks second among the country’s operators, is also reviewing a counter-bid for Oi. Parent TI is reportedly meeting Brazilian officials next week to make sure that the government will not object to a takeover.
