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Monday, Oct 7
Vodafone reportedly uninterested in TI's Brazilian unit
- A source tells Bloomberg Vodafone (VOD) is uninterested in acquiring TIM Participacoes (TSU), Telecom Italia's (TI) Brazilian unit.
- There had been speculation Vodafone, set to be flush with Verizon Wireless cash, would make a bid for TIM, which TI is looking to unload following the Telefonica/Telco deal and the resignation of CEO Franco Bernabe (who wanted to hold onto Tim). AT&T is viewed as another potential acquirer.
- Meanwhile, Egyptian billionaire Naguib Sawiris, who once wanted to buy a stake in TI, now has a 1.2M-share short position in the Italian carrier. Reuters reports Sawiris believes TI will soon be hit by a credit downgrade - S&P just put the Italian carrier on watch for one - and considers it unlikely TI will be able to sell TIM before needing to raise fresh capital.