- Providing fresh fodder for Brazil's ongoing telecom soap opera, Reuters reports Telecom Italia (TI -2.1%) "has concluded it cannot make a move in the expected consolidation of the Brazilian market ... until the corporate turmoil abates at prospective merger partner Oi (OIBR -6.3%).
- Oi, which just agreed to sell its Portuguese ops for $9.1B, reportedly needs to "cut its debt and costs" before TI agrees to merge TIM Participacoes (TSU -2.8%) with its Brazilian rival. "[Telecom Italia] is in no rush. They are testing the ground and they will not make a rushed decision," says a source.
- Bloomberg reported on Wednesday Oi, America Movil/Claro, and Telefonica/Vivo plan to jointly bid $15B for TIM. Vivo (VIV -2.7%) denies it's currently in acquisition talks.
- All of the related parties are selling off on a rough day for equities in general, and telecom names in particular.