No "crazy offers" in Brazil, says Telecom Italia CEO
Marco Patuano, CEO at Telecom Italia, told reporters this morning that the company will not make any “crazy offers” in Brazil, following the news that Telefónica placed a bid for Brazilian internet provider GVT.
On Tuesday, Telefónica bid €6.7 billion for Vivendi’s GVT in a move expected to affect Telecom Italia – in which Telefónica holds a 14.8% stake – which has been looking to bolster its presence in Brazil.
With considerable debt and a need for costly network upgrades, Telecom Italia has held back from making the first move in Brazil, but Telefónica’s offer could force it to make a counter-bid for GVT.
Telecom Italia had not ruled out the possibility of merging the Brazilian firm with its own TIM Brasil to enhance its broadband presence and has confirmed that it will carry out an in-depth evaluation of its strategic options in Brazil.
“We would take that as a signal that TIM Brasil could yet enter the fray,” analysts at Jeffries said.