elecom Italia CEO says merger with Oi should be explored
Marco Patuano, the CEO of Telecom Italia (TI), would look at exploring a merger with Oi, the Brazilian telecoms group, Italian language daily Il Sole 24 Ore reported. The report cited Patuano as telling analysts that such an important "strategic opportunity" had to be examined. Patuano said that if TI had a 51% stake in the merged entity formed from Oi and TI's Brazilian subsidiary mobile telco Tim Brasil, there would be significant synergies from the combination of fixed line and mobile telephony operations, the report added. Patuano added that such a merger would only be pursued if it created value for shareholders, the item said.
The item also cited Patuano as noting that TI's primary strategy was to remain in Brazil with its existing assets. The report noted that Oi has been rumoured to be considering a bid on Tim Brasil itself. The item noted that Patuano argued that such a bid would face considerable regulatory difficulties.
The item also cited Patuano as saying that TI expected to complete the sale of its Brazilian transmission tower network by the end of the year. Patuano said that the proceeds would be used to fund TI's participation in the 4G spectrum auctions being conducted by the Brazilian government, the report said.
The report also said, without citing sources, that TI would hold an extraordinary general meeting in the week beginning 17 November entirely dedicated to its Brazilian strategy.
Source Il Sole 24 Ore