TI receives two unsolicited bids for TIM Brasil

14 Nov 2006

Telecom Italia (TI) yesterday said it had received two unsolicited offers for its Brazilian mobile phone operator TIM Participaçoes (TIM Brasil), valuing the Italian company’s stake in the venture at up to EUR7 billion (USD9 billion). TI has allowed TIM Brasil’s senior management to consider bids and negotiate the possible sale of the company, currently the number two player in the local cellular market. According to people familiar with the situation, one bid values the stake at between EUR6 billion and EUR7 billion, while the other offer is closer to EUR6 billion. The Italian telecoms firm has 81.2% of TIM Participaçoes’ ordinary shares and 63.7% of the preferred shares, for a total of 69.7% of the share capital.

Although TI has declined to name the bidders, analysts have named Mexico’s América Móvil, Spain’s Telefónica and Brasil Telecom Participaçoes as the potential buyers.

Brazil, Telecom Italia (TIM), TIM Brasil