Oi may consider merger with Tim rather than acquisition
The interim CEO of Oi (OIBR3, OIBR4: BZ; OIBR, OIBR.C: NYSE), the Brazilian listed telecom, could change the company's stance in favor of a potential merger with TIM Participacoes (TIMP3: BZ, TSU: NYSE), Brazil’s second-largest mobile telephone operator, according to a newswire report.
Bayard Gontijo, the executive, said he would have no "prejudice" in creating shareholder value when asked about a potential merger of the companies, Bloomberg reported, citing a conference call with analysts.
Each company has been confirmed or reported to be looking to acquire the other. In August, Oi announced the hiring of Banco BTG Pactual to help it study an offer for TIM, while TIM hired Banco Bradesco in October to negotiate the purchase of Oi, according to a recent newswire report.
Telecom Italia (TI), which owns a 67% stake in TIM, announced last week that its preferred option is to retain TIM, while TI CEO Marco Patuano has said the carrier must look into any good opportunities that arise in the country.