Telecom Italia (TI) will not sell its Brazilian unit TIM Brasil in the short term, its CEO Marco Patuano has told local daily Valor Economico.
Speaking during a trip to Brazil to meet the country’s new telecoms minister, Ricardo Berzoini, Patuano…
Telecom Italia (TI) will not sell its Brazilian unit TIM Brasil in the short term, its CEO Marco Patuano has told local daily Valor Economico.
Speaking during a trip to Brazil to meet the country’s new telecoms minister, Ricardo Berzoini, Patuano reportedly said that, for the time being, TI will focus on upgrading TIM’s network and improve service quality, rather than pursuing a merger with smaller rival Oi.
TI management is keener to carry out acquisitions in Europe, where the high number of players has led to an intense price war between the main players, than in Brazil, he said.
A deal with Oi − Brazil’s fourth largest carrier − would be very complex and would not be compatible with TI’s current corporate governance structure, the CEO pointed out without elaborating further.
TI’s chairman Giuseppe Recchi, who accompanied Patuano during his trip, reportedly added that the group decided to exit the Argentine market to focus on Brazil, which, as one of the world’s largest telecoms markets, holds strong potential.
The Italian incumbent will reportedly embark on a roadshow in the US and Brazil after announcing its 2014 results and strategic plan on 20 February.
In January, rumours that Oi was preparing a bid for TIM in partnership with Telefonica’s Vivo and America Movil’s Claro gained momentum after the Rio de Janeiro-based telco received shareholders’ approval for its €7.4bn sale of PT Portugal to Altice.
The highly-leveraged carrier has repeatedly said it would use the proceeds from the deal to reduce its R$46bn (US$17bn) debt and play an active role in Brazil’s consolidation process.