Slim raises offer for TIM Brasil to USD10 billion

15 Dec 2006

Mexican telecoms entrepreneur Carlos Slim has raised his bid for TIM Brasil to around USD10 billion from the original USD8 billion, writes BNamericas citing local daily Folha de Sao Paulo. Carlos Slim, who owns fixed line telco Telmex and wireless holding group América Móvil, is seen as the only real candidate for acquiring TIM, after Spain’s Telefónica ruled itself out of the bidding last month. The Spaniards said that bidding would force them to exceed the group’s self-imposed mergers and acquisitions cap of EUR1.5 billion (USD1.92 billion) until the end of 2007. An acquisition by Slim would require approval from the competition authorities, as a merger of America Movil’s existing Brazilian arm Claro with TIM Brasil would create an undisputed market leader. Nonetheless, telecoms regulator Anatel has previously approved controversial deals such as the merger between pay-TV companies Sky and DirecTV, and has publicly said it would consider approving a Claro-TIM merger.

Brazil, America Movil (AM), TIM Brasil