TIM Brasil disapproves of China Telecom’s Oi bid
10 November 2017 | Natalie Bannerman
According to Reuters, Stefano de Angelis, president of Tim Participações SA was speaking to analysts after the release of its latest quarter results and was quoted as saying: “We don’t like companies that want to invest in the country, putting conditions on the government for those investments.” Although a rumoured merger with TIM is being reported by local media as a potential strategy for Oi as an alternative to the China Telecom deal.
The news comes after, last month Eduardo Navarro, chief executive of Telefonica Brasil said that the company was concerned by the entry of state-run companies like China Telecom entering the Brazilian market as they are not responsive to shareholders.
Earlier this month China Telecom and TPG Capital Management were rumoured to be in discussions with Brazil’s solicitor general over the potential acquisition. However, according to local media, they told the government that they will not invest unless until there is a key telecoms reform and they government renegotiates billions of dollars in fines that Oi still owes.
De Angelis has denied any tie-up with Oi while also denying its rumoured interest in the telecoms arm of Cia Energética de Minas Gerais’. He added that TIM has plenty of opportunities to increase its EBDITA because of ongoing digitalisation efforts and its projects to improve phone charging.
Back in September, China Telecom officially confirmed the rumours of its interest in Oi as the two signed a confidentiality agreement as the talks began and at the beginning of November the state-led telco said it was considering spending approximately $6 billion on the acquisition.