CEO Amos Genish reportedly keen to strengthen telco’s market share, spectrum holdings
Telecom Italia’s (TIM’s) Brazilian arm is mulling a move for Nextel, it emerged on Thursday.
Sources cited by Bloomberg expect group CEO Amos Genish to bring up the subject at a board meeting due to take place next Monday. TIM could hire advisors to explore a potential bid, pending board approval, the sources said.
According to these sources, TIM Brasil wants to acquire Nextel in order to strengthen its market share and boost its spectrum holdings in certain metropolitan areas.
Nextel is 70% owned by U.S.-based NII Holdings which used to own mobile operations in several markets in Latin America before filing for bankruptcy protection in September 2014. It exited Chapter 11 in 2015 with Brazil as its sole remaining mobile asset.
In August, NII confirmed that it had begun holding discussions about the future of Nextel Brazil, and reports at the time claimed that it expected to receive offers for the unit in September.
Meanwhile, TIM’s Genish is also expected to moot potential asset sales at next week’s board meeting. Bloomberg’s sources claimed that divestments might include wholesale arm Sparkle, media unit Persidera, as well as a stake in its towers business, Inwit.