Telecom Italia denies merger talks with Oi

Telecom Italia has denied any contact with Oi over a potential merger of Oi and Tim Brasil.

A Telecom Italia spokesperson told Reuters: “There are no contacts, neither formal nor informal.”

The statement follows rumours that Oi and Tim Brasil have begun talks discussing possible changes - and an impending easing of Brazilian regulatory rules – that could be favourable for a merger.

In October 2015, Russian billionaire Mikhail Fridman offered to invest $4 billionin Oi – through its LetterOne fund – if it merged with Tim Brasil. Both Telecom Italia and Oi's CEOs said then that more flexible regulation of carriers in the Brazilian market would encourage potential further consolidation.