TIM Brasil on Wednesday said it is not holding merger talks with rival Oi, denying claims to the contrary in a local media report.
"The company does not have any discussion[s] in course with the parties mentioned in the news," the telco said in a statement to the market.
The firm was reacting to a piece in Valor Economico asserting that Oi advisor BTG Pactual has held frequent talks with investment fund LetterOne, Russian billionaire Mikhail Fridman – founder of LetterOne and of Alfa Group – and with TIM parent Telecom Italia with a view to brokering a merger.
The deal could exceed 50 billion reais (€11.4 billion), the paper said.
Brazil’s fourth largest mobile operator Oi announced it had hired BTG Pactual to advise it on its options regarding a move for TIM, the number two player in the market, as long ago as August 2014.
At that time it appeared that TIM would be snapped up by one or more of its rivals sooner rather than later, but as yet little has come of the myriad M&A rumours dogging it.
Telecom Italia has repeatedly insisted that it views TIM Brasil as a strategic asset, while at the same time implying it would be willing to consider a deal at the right price. The arrival of France’s Vivendi, which sold out of Brazil earlier this year, as Telecom Italia’s largest shareholder has intensified speculation that the Italian incumbent will ultimately leave the market.
Indeed, in its statement on Wednesday, TIM noted that it is keeping abreast of any potential market opportunities and will keep shareholders and the market informed of any developments.
