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Telecom Italia ready to consider Oi merger - CEO
2014-11-10 08:51:00| Telecompaper Headlines
(Telecompaper) Telecom Italia has no option but to consider a potential merger with Brazilian operator Grupo Oi as it seeks to strengthen its local unit TIM Brasil, according to the Italian company's CEO Marco Patuano. "I think it's mandatory to explore the possibility of such a big strategic opportunity," Patuano told reporters when asked about Telecom Italia's interest in merging with Oi, subsequently adding that "we're not desperate and we don't want to make a deal at any cost." Telecom Italia's minority investors association Asati has urged the company not to sell its controlling stake in TIM Brasil, but to explore the possibility of a merger with Oi. In a letter to the Telecom Italia board, Asati said an agreement with Oi would represent a great opportunity and could be reached with a "modest" capital hike. Patuano has repeatedly emphasised the value and strategic importance of TIM Brasil to Telecom Italia, a stance backed up by leading shareholders such as Marco Fossati. However, Brazilian operator Oi recently confirmed that it has hired BTG Pactual to consider a takeover bid for TIM Brasil, with Telecom Italia's unit looking to counter that initiative by hiring Banco Bradesco to analyse "strategic alternatives".
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Category:Telecommunications