Brazil Telecom and TI to merge mobile units

29 Apr 2005

Brasil Telecom and Telecom Italia (TI) have reached an agreement to merge their Brazilian mobile units, paving the way for TI to return as controller of Brasil Telecom, settling a three year dispute between the two. The merger is worth around EUR341 million (USD440 million), and under the terms of the deal TI will pay EUR291 million to buy Brasil Teelcom shares owned by Brazil’s Opportunity Bank and another EUR50 million to settle outstanding lawsuits. Brasil Telecom will transfer its mobile activities and related infrastructure to TIM Brasil, and TIM will hand over its long distance business assets to Brasil Telecom in return. At the end of March 2005 Brasil Telecom claimed around a million mobile clients.