A bid, which could see Spanish giant Telefonica buy part of Telecom Italia (TI)’s unit TIM Brasil, is underway.
On Friday morning, a spokesman for BTG Pactual, the investment bank linked to the matter, told TelecomFinance that the institution is…
A bid, which could see Spanish giant Telefonica buy part of Telecom Italia (TI)’s unit TIM Brasil, is underway.
On Friday morning, a spokesman for BTG Pactual, the investment bank linked to the matter, told TelecomFinance that the institution is working on the potential deal, but declined to comment further.
According to media reports, Telefonica is looking to set up an investment unit with Brazilian rivals America Movil and Oi to take over and split up TIM Brasil.
State-owned banks could back the transaction, Reuters said, quoting Italian newspaper Il Sole 24 Ore. It also named Pactual as one of the institutions working on the deal.
Telefonica, which has an indirect stake in TIM Brasil via its 15% interest in TI, is reportedly set to table an offer by month-end.
Earlier in the day, Telecom Italia issued a statement saying it is unaware of any “offer” for TIM Brasil and that its Brazilian company is a “strategic asset”. Telefonica and TIM Brasil were not immediately available for comment.
In early December, TI had issued a statement strongly denying it was negotiating the sale of its majority stake in TIM Brasil, following intense media speculation.
Shortly after, Brazil’s antitrust regulator Cade reportedly gave Telefonica 18 months to either reduce its stake in TI’s controlling shareholder Telco – which it took control of in September, thus giving it sway over TIM – or find a new partner to take joint-control of its direct Brazilian subsidiary Vivo.
Cade is concerned about the influence the Spanish operator has in the country’s mobile market, according to reports, as Vivo and Tim are Brazil’s two largest operators.
