TIM Participacoes has hired investment bank Bradesco to help it explore strategic options in an appointment that the operator has described as “routine”.
However, the second-placed Brazilian operator refused to confirm that Bradesco would help it prepare a bid for Oi, saying that the appointment “did not constitute a mandate to evaluate a bid to buy Oi”.
With consolidation likely afoot in the Brazilian market, it has been suggested by several industry observers – among them Bloomberg – that TIM is attempting an acquisition of fourth-placed integrated operator, Oi.
In fact, Bloomberg has also reported that Oi hired Banco BTG Pactual for the same purpose – i.e. advise about a potential acquisition of Telecom Italia’s stake in TIM Participacoes. Oi is believed to be looking for a partner to launch this bid.
Earlier this week, Oi CEO Zeinal Bava resigned in a move that could see the operator’s in-progress merger with Portugal Telecom fall through. This would allow Oi to focus on consolidation within the Brazilian market.