TIM Participações S.A.NYSE
Wed, Nov. 16, 2:56 PM
- Amid continuing speculation about Telecom Italia's (TI -2.1%) intentions for Brazilian unit TIM Participações (TSU +0.9%), TI chief Flavio Cattaneo says TIM is a "good asset" as the company looks to the struggling nation for growth prospects.
- "Brazil is fundamental because Brazil today is a good asset for us," Cattaneo said in Barcelona. As CEO, he had replaced Marco Patuano, who saw increasing differences with the growing ownership of Vivendi (OTCPK:VIVHY -1%) over whether to sell the Brazilian unit (Patuano wanted to hold on to it).
- Listed companies in Brazil are undervalued compared with unlisted companies, he says: M&A values at 8-10 times EBITDA while listed companies are more like 4 to 4.5 times EBITDA.
- He reiterated a lack of interest in merging with now-bankrupt Oi (NYSE:OIBR), whose mountain of debt is the issue: Last month, he had said "If Oi manages to split its debt from its assets ... we will be watching."
Tue, Nov. 1, 2:04 AM
Tue, Oct. 18, 1:17 PM
- A heavy debt load tied to now-bankrupt Oi (NYSE:OIBR) means that Telecom Italia (TI +2.9%) isn't interested in a purchase, says CEO Flavio Cattaneo.
- Speaking to newspaper Valor Economico, Cattaneo pointed to 20B reais (about $6.2B) in fines owed by Oi, almost the same as the market value of TI's Brazilian unit TIM Participações (TSU +1.9%). "If Oi manages to split its debt from its assets ... we will be watching," Cattaneo says.
- Cattaneo took over as TI's CEO amid well-documented disputes between former chief Marco Patuano and investing shareholder Vivendi (OTCPK:VIVHY +1.4%) over the disposition of TIM. Patuano was inclined to hold on to the Brazilian unit while Vivendi actively pushed to sell the division.
- Previously: Patuano exit from Telecom Italia likely to speed pending deals (Mar. 29 2016)
Tue, Jul. 26, 4:03 AM
Thu, Jul. 14, 5:36 PM
Fri, May 13, 7:48 PM
- Recently under new leadership, Telecom Italia (TI -0.3%) says it's tripling its target for cost cuts, to save €1.6B (about $1.8B) by 2018.
- That will be evenly divided between operating cuts and capital expenditures, the company said in a late Friday earnings filing.
- EBITDA fell 16% to €1.71B, short of consensus for €1.81B, and revenues fell 12% to €4.4B, short of expectations for €4.48B in sales.
- CEO Flavio Cattaneo -- who took over in March for Marco Patuano, who clashed with the growing ownership of top shareholder Vivendi (OTCPK:VIVHY -1.5%) -- is pushing to increase profitability at the Italian incumbent carrier, as well as resolve the company's challenges in Brazil.
- TIM Participaçoes (TSU -4.7%), its unit in Brazil, saw revenues decline nearly 16% this quarter amid the country's deep recession and hot competition against Telefonica Brasil (VIV -2.5%). Stefano De Angelis is taking over as TIM's CEO from Rodrigo Abreu.
- Patuano was reportedly inclined to want to hold on to the TIM unit, while Vivendi has actively pushed for a sale.
- After hours: TI +0.3%; TSU -0.2%.
- Now read Is The Deal With Vivendi A Positive Sign For Mediaset? »
Thu, May 12, 12:54 AM
- TIM Participacoes (NYSE:TSU): Q1 net income of R$144.4M
- Revenue of R$3.85B (-15.6% Y/Y).
Thu, Apr. 28, 1:43 PM
- In its continuing transition, Telecom Italia (TI +1.5%) has named Vivendi (OTCPK:VIVHY -1.5%) CEO Arnaud de Puyfontaine its deputy chairman.
- It's a non-executive role for the moment, but it ties de Puyfontaine closer to TI's strategic direction in a year where the French media giant has muscled in to assert greater control over the Italian incumbent telecom, with an eye to making a southern European media hub.
- TI CEO Marco Patuano left the company in March amid what was widely reported disagreement with Vivendi's approach, including the disposition of Brazilian unit TIM Participaçoes (TSU -2.7%).
- Patuano's exit (and de Puyfontaine getting closer to strategy) might accelerate pending deals at the carrier, including not only a potential Brazil deal but network and tower deals in Italy.
Thu, Apr. 21, 10:57 AM
- Vivendi (OTCPK:VIVHY -2%) is actively pushing Telecom Italia (TI -0.1%) toward a sale of its Brazilian unit, TIM Participaçoes (TSU +1.8%), sources tell CTFN.
- The French media giant's stance on TIM was a clear catalyst for the March departure of Marco Patuano as TI's chief executive, as Patuano was inclined to hold on to the business.
- A series of machinations over the past year took place around the possible merger of TIM with debt-laden carrier Oi (OIBR -3.5%) before the prospects of a deal imploded.
- An M&A lawyer said that when Vivendi inherited its Telecom Italia stake in 2014 (via its sale of broadband company GVT to Telefonica), it was already expressing an interest in getting out of Brazil and taking charge of TI as a media platform.
- Rivals Telefonica Brasil (VIV -0.2%) and Claro (AMX +1.5%) aren't likely candidates to take over TIM due to regulatory issues. Oi is surely a candidate again, but more desperate for a move than TIM. Brazil might go for a bid from someone like Vodafone (VOD -0.8%), though.
- Now read Oi's Debt Restructuring: A 4-Player Chess Game »
Sat, Mar. 19, 5:45 PM
- Amid a growing clash of strategies with major shareholder Vivendi (OTCPK:VIVHY), Marco Patuano is resigning today from the role of CEO at Telecom Italia (NYSE:TI), according to media reports.
- The resignation will reportedly be formal within the next few days.
- Chairman Giuseppe Recchi is assuming interim CEO duties, Bloomberg says, though boardmember Flavio Cattaneo is a favorite to take over the permanent job.
- Reports from a strategy meeting between Vivendi and TI in early March hinged on likely differences of opinion on the company's TIM Participaçoes (NYSE:TSU) Brazil business (Patuano wanted to retain it, while Vivendi is said to favor a sale).
- Vivendi got an 8% stake in Telecom Italia last June as part payment for selling broadband company GVT to Telefonica. It has since tripled that stake to near 25% and taken on four board seats, using the Italian incumbent in pursuit of a southern European media strategy.
Thu, Mar. 10, 10:31 AM
- Struggling Brazilian telecom Oi (OIBR -5.8%) has hired PJT Partners as a strategic adviser, just a month after plans to merge it with another telecom fell apart.
- PJT will help "evaluate strategic and financial alternatives to optimize its liquidity and debt profile," Oi said in a filing. A ballyhooed effort to combine the debt-ridden carrier with rival TIM Participações (NYSE:TSU) came to an end last month as TIM owner Telecom Italia rejected further discussions.
- Oi bonds tumbled and its stock is at its lowest point in decades. After deal talks dissolved, Oi said it would look for other consolidation options and keep streamlining its size of operations, improve infrastructure and revamp its sales approach.
- Previously: Oi hiring advisers to renegotiate $3.3B in debt (Mar. 02 2016)
- Previously: Brazil's Oi tanks, -15.7%, as TIM merger plans implode (Feb. 25 2016)
Mon, Mar. 7, 7:07 PM
- After reports emerging from a key strategy meeting with Vivendi (OTCPK:VIVHY -0.4%) last week, Telecom Italia (TI -3.6%) chief Marco Patuano says he's never been asked to sell the company's Brazilian business.
- "Vivendi wants to sell Brazil" -- TIM Participaçoes (TSU -1.5%), the company's Brazilian unit -- "and Patuano does not," a source told Reuters last week.
- Speaking to Il Soe 24 Ore, Patuano says he never received a request and he continued to believe in the Brazilian operation despite that country's recession.
- On the implosion of a possible merger with Oi, Patuano said the company's stance on roles was far from that of LetterOne's Mikhail Fridman, trying to make a deal happen. TI expected to be the "industrial leader" of a merged group.
- As for tensions with Vivendi, which has assembled a large stake in the telecom and might replace him, Patuano says "Managers always respond with their performance and shareholders are always sovereign."
- Previously: Reuters: Telecom Italia pursuing Metroweb network deal within weeks (Mar. 04 2016)
- Previously: Vivendi, Telecom Italia chief on tense course over strategy alignment (Mar. 04 2016)
Fri, Mar. 4, 4:30 PM
- With Vivendi (OTCPK:VIVHY -0.4%) throwing its weight around in a new strategy -- buying up shares of game makers Ubisoft and Gameloft, and of Italian communications incumbent Telecom Italia (TI +2.8%) -- the heat is on TI chief Marco Patuano to get on board the strategy that Vivendi tycoon Vincent Bollore is pursuing.
- Shares of TI are up 10.5% since Wednesday's strategy meetings between Patuano and Vivendi execs, among speculation that change is coming whether Patuano continues to lead or not.
- A 26-year veteran of the company, Patuano has increased spending on network infrastructure but has had to navigate a tricky mix of shareholders and government. Italy considers the company of strategic interest to the state, potentially complicating a move in from a French billionaire.
- Tensions were present from the time Vivendi first took its stake, and they may be intensifying as Vivendi's stake grows. Patuano struck the deal to sell off TI's control of Telecom Argentina (TEO +0.6%) and spun off its cell towers in a series of moves to address debt, but "Vivendi wants to sell Brazil" -- TIM Participaçoes (TSU +4.8%), the company's Brazilian unit -- "and Patuano does not" since he sees it as strategic, a source tells Reuters.
- Vivendi has built its stake to 23.8%, but has just four of 17 board members at present.
Wed, Mar. 2, 5:34 PM
- With the kibosh on an in-country merger, and laden with liabilities, Brazilian telecom Oi (OIBR +3.5%) has hired PJT Partners and Rothschild Group to refinance about 13B reais of debt (about $3.34B) that's coming due by the end of next year, Reuters reports.
- The company will reportedly first try extending maturities. Rothschild, already assisting Oi since last year, will work with local lenders while PJT talks to bondholders.
- A long-discussed merger with TIM Participaçoes (TSU +1.3%), the local arm of Telecom Italia (TI +1.1%), was seen as a lifeline for the struggling company. But the implosion of those talks sent Oi's equity and bonds sinking, and the company has about 35B reais ($9B) in net debt.
- Oi ADRs have lost 24% of value over the past month.
- After hours: TSU -1.1%; TI -1.5%.
- Previously: Brazil's Oi tanks, -15.7%, as TIM merger plans implode (Feb. 25 2016)
Thu, Feb. 25, 1:26 PM
- Brazilian telecom Oi (NYSE:OIBR) is down 15.7% -- and Telecom Italia (NYSE:TI) up 3.6% -- after the Italian carrier rejected a plan to merge Oi with its TIM Participações unit (TSU -0.4%).
- "L1 Technology has been informed by TIM that ... it does not wish to enter into further discussions, about the facilitation of a merger between Oi and TIM in Brazil," wrote LetterOne, the investment firm run by Russian billiionaire Mikhail Fridman that had exclusive rights to pursue the tie-up until May 23.
- Along with tumbling equity, Oi's bonds have taken a fall. The company's 2020s were down 14 points, and 2022s down 11 points.
- Oi had counted on the deal to stay afloat amid massive debt; Fitch had previously said that failing to merge with TIM could drop Oi's bonds into single B ratings.
- Oi says in a filing that it will continue to consider consolidation options and keep streamlining its size of operations, improve infrastructure and revamp its sales approach.
- Previously: Regulator: Brazil should start fresh on telecom rules (Feb. 18 2016)
- Previously: Oi reportedly near deal for $1B in credit to pursue TIM merger (Jan. 19 2016)
- Previously: Telecom Italia: No contact with Oi over TIM tie-up (Jan. 08 2016)
Thu, Feb. 18, 6:49 PM
- Brazil should scrap its telecom regulations and start fresh, rather than focusing on some dated rules for required landline service, says an official with the country's regulatory agency Anatel.
- That stance would line up with public comments from principals at Telecom Italia (TI +2.9%) and its TIM Participações unit (TSU +0.3%), as well as Oi (OIBR -9.4%) -- all of whom said that Brazil needs looser rules before some much-needed industry consolidation.
- A number of players have tried to merge Oi with TIM for some time, though many have complained that Brazil's requirements for landline spending (dating to 1998) are getting in the way.
- That framework is outdated because most Brazilians have phones and can choose from competition, says Anatel's Igor Vilas Boas de Freitas. He's calling for the agency to create an entirely new plan with 40 days, which would then go to the Communications Ministry and President Dilma Rousseff for approval.
- The commissioners also postponed a vote on whether Oi could keep part of the $1.1B it owes in fines to use for service improvements.