Fri, Feb. 20, 3:33 PM
- Oi SA (NYSE:OIBR) is down 6.9%, against a challenging decline in the Brazilian real (down 1.4% against the dollar over the past couple of days) and following comments from Telecom Italia (NYSE:TI) CEO Marco Patuano, saying that a tie-up between Oi and TI's TIM Participacoes (NYSE:TSU) is "on hold."
- "In this moment, we are 100% concentrated on the organic situation of our company," Patuano told CNBC. "Around Oi, there has been quite a lot of speculation -- we did our homework. We made a very detailed analysis, and for the time being, it's on hold."
- Patuano says, however, it's fortunate that the deal isn't dead, considering the new parliament, and: "We are talking with the Brazilian government on a daily basis."
- TI is set to invest €14.5B in Brazil and Italy through 2017.
- TSU shares -3.5%.
- Previously: Reuters: Telecom Italia waiting for Brazil's OK to pursue Oi (Feb. 04 2015)
- Previously: Telecom Italia gears up in Brazil (Jan. 30 2015)
Thu, Feb. 19, 2:02 PM
- Oi SA (NYSE:OIBR) is off 7.4% and has been as low as -9.7% in the past hour, leading a pack of related Brazilian stocks in declines (also trading lower: PT, -2.3%; VIV, -0.7%; TSU, -0.2%).
- Telecom Italia (NYSE:TI) -- trying to merge its TIM with Oi -- is off 1.6%.
- The Brazilian real's slipped 1.1% against the dollar, which is showing strength against several global pairs, including the Swiss franc, the Loonie and the euro.
- ETFs: EWZ -1%. Other related funds: BRF, BRXX, EWZS, BZF, BRZU, BRAQ, BZQ, BRAZ, BRAF, UBR, DBBR, FBZ
Fri, Feb. 13, 6:19 AM
Wed, Feb. 4, 9:37 AM
- Sources tell Reuters that Telecom Italia (NYSE:TI) is waiting for approval from Brazil's government before any acquisition talks regarding Oi SA (NYSE:OIBR), its local competitor.
- CEO Marco Patuano is to update TI's board on Thursday with the latest on his directive to investigate merging TI's TIM Participacoes (NYSE:TSU) with Oi. There are "key issues that still have to be resolved" though the government still reportedly favors strengthening TIM.
- Telecom Italia is aiming for 51% of the merged entity and sees €9B in synergies from the deal.
- Shares are trading significantly lower: (OIBR -6.9%); (TI -3%); (TSU -4.1%)
Thu, Jan. 22, 4:00 PM
- Portugal Telecom (PT +17.9%) shareholders have signed off on the $8.7B sale of Oi's (OIBR +20.1%) Portuguese assets to Altice.
- With the sale approved, debt-laden Oi is expected (perhaps with the help of rivals) to turn its sights on acquiring part or all of TIM Participacoes (TSU +2.9%), thereby cutting the number of Brazilian mobile carriers to three.
- Earlier: Oi, PT surge as Portuguese vote looms
Dec. 18, 2014, 6:14 PM
- Bloomberg reports Telecom Italia (NYSE:TI) is "leaning toward making an all-stock offer" through 67%-owned TIM Participacoes (NYSE:TSU) to merge with Brazilian rival Oi (NYSE:OIBR), should it bid for Oi.
- However, sources add TI wants a thumbs-up from Brazil's telecom regulator before it makes a move, and is unlikely to decide on its plans before February or March. An all-stock offer would allow debt-laden TI to avoid hurting its credit rating.
- The latest wrinkle to Brazil's telecom drama comes a week after Bloomberg reported Oi, America Movil/Claro, and Telefonica/Vivo plan to jointly offer $15B for TIM. Such a deal could be easier for regulators to swallow, since it would spread TIM's assets between three carriers.
- Oi rose 10.7% in regular trading today, aided by a market rally. Shares made a new 52-week low of $0.33 on Wednesday.
- Prior Oi/TIM coverage
Dec. 16, 2014, 11:14 AM
- Oi (OIBR -9.8%) CEO Bayard Gontijo stated yesterday his company will hold a Jan. 26 bondholder meeting in which it will ask for debt level restrictions to be loosened, in order to gain more M&A flexibility.
- Oi already had R$47.8B ($17.3B) in net debt at the end of September. The carrier is set to reap $9.1B from selling its Portuguese ops to Altice.
- Rivals TIM Participacoes (TSU -3.2%) and Vivo (VIV -2.2%) are also selling off; Brazil's Bovespa index is down 0.6%. Oi has been rumored to be planning a joint bid for TIM with Vivo and America Movil's Claro.
- Previous: TI reportedly in no rush to sell TIM
Dec. 12, 2014, 2:40 PM
- 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.
Dec. 10, 2014, 1:53 PM
- Bloomberg reports Oi (OIBR -2.6%), America Movil's (AMX -2.7%) Claro, and Telefonica's (TEF -0.7%) Vivo (VIV +2.8%) plan to jointly offer $15B for Brazilian rival TIM Participacoes (TSU +11.6%).
- TIM has soared on the report, which comes shortly after Oi struck a deal to unload its Portuguese ops for $9.1B. TIM's market cap is now at $12.1B; parent Telecom Italia (TI +1.2%) has risen modestly.
- A Brazilian paper reported in October Oi, Claro, and Vivo were interested in acquiring and breaking up TIM to consolidate a mobile market facing slowing growth and tough price pressure.
Dec. 9, 2014, 10:37 AM
- Portugal Telecom (PT +3.4%) is higher on a rough day for equities after Oi's (OIBR -3.6%) board signed off (following weeks of rumors) on the sale of Oi's Portuguese ops to Altice for $9.1B. Oi is heading in the opposite direction.
- TIM Participacoes (TSU +0.7%), which many expect will now be targeted by Oi (and perhaps also other Brazilian mobile rivals), is up modestly.
Nov. 30, 2014, 4:44 PM
- French cable giant Altice has agreed to buy Oi's (NYSE:OIBR) Portuguese ops for €7.4B ($9.2B), Reuters reports. Bloomberg reports Altice is "close to reaching an agreement," after having beaten out a bid from P-E firms Apax and Bain.
- A Reuters source says Oi and Altice will soon announce they're entering three weeks of "exclusive talks and due diligence" to finalize the deal, which would serve to unravel Oi's merger with Portugal Telecom (NYSE:PT). PT's main asset is a minority stake in the combined company.
- Selling the Portuguese assets could pave the way for Oi to merge with Brazilian rival TIM Participacoes (NYSE:TSU), or to partner with two other rivals - Telefonica's Vivo (NYSE:VIV) and America Movil's Claro - in acquiring and breaking up TIM. TIM parent Telecom Italia (NYSE:TI) has reportedly been weighing a deal with Oi.
Nov. 21, 2014, 6:36 PM
- American Tower (NYSE:AMT) is buying 6,480 towers from TIM Participacoes (NYSE:TSU) for R$3B ($1.2B), slightly more than the ~$1.1B previously reported by Reuters. AMT "intends to finance the acquisition in a manner consistent with its previously announced leverage targets."
- The towers are expected to produce R$435M/year ($171M/year) in revenue, and R$191M/year ($75M/year) in gross margin. TIM has agreed to 20-year leases for the towers, and will act as their anchor tenant.
- AMT has already bought Brazilian towers from NII Holdings, and acquired local tower owner BR Towers. The company also bought 666 Brazilian towers in 2011, a transaction Muddy Waters took aim at.
- Altogether, AMT owned/operated 69.5K towers at the end of Q3.
Nov. 21, 2014, 3:48 AM
- Telecom Italia (NYSE:TI) will likely sell the mobile phone towers of its Brazilian unit TIM Participacoes (NYSE:TSU) to American Tower (NYSE:AMT) for almost €900M ($1.1B), says Reuters quoting two sources.
- Yesterday, Telecom Italia was reported to be weighing a deal between TIM and Brazil's Oi (NYSE:OIBR), saying it would ask its board for support today to "explore a potential transaction".
- Previously: Oi, PT rally; Telecom Italia reportedly weighing deal
Nov. 20, 2014, 4:03 PM
- Bloomberg reports Telecom Italia (TI -1.4%) will ask for board support tomorrow to "explore a potential transaction" between TIM Participacoes (TSU -0.8%) and Brazilian rival Oi (OIBR +5.7%). Both Oi and merger partner Portugal Telecom (PT +2.8%), whose main asset is a stake in the merged company, have rallied.
- TI was rumored to be interested in Oi in September, but quickly responded by saying it's not in talks with the carrier.
- Meanwhile, multiple bids have been made for control of Portugal Telecom, and a report has also surfaced that all three of TIM's rivals (including Oi) want to buy the company and break it up in order to consolidate Brazil's slow-growing mobile market.
Nov. 17, 2014, 7:29 AM
- Telecom Italia (NYSE:TI) says is not studying a new share sale, dismissing reports that it was considering raising cash from investors to fund an acquisition in Brazil.
- Last week, Telecom Italia's chief exec Marco Patuano said he was ready to explore the possibility of buying rival Brazilian Oi (NYSE:OIBR).
- The board of Telecom Italia is also expected to meet this week to discuss the options for TIM Participacoes (NYSE:TSU), its majority-owned Brazilian subsidiary.
Oct. 31, 2014, 10:14 AM
- Brazilian paper Folha de S. Paulo reports America Movil (AMX +1.6%), Telefonica's (TEF +1.2%) Vivo (VIV +4.9%), and Oi (OIBR +12.3%) have agreed in principle to pay R$31.5B ($13.1B) to acquire and break up TIM Participacoes (TSU +8.6%), Telecom Italia's (TI +2.9%) Brazilian unit.
- The paper adds a formal offer will be made to TI shareholders. TI chairman Giuseppe Recchi says his firm hasn't yet received an offer. TIM's market cap is currently at $12.5B.
- AMX would reportedly keep 40% of TIM, Telefonica 32%, and Oi 28%. Rumors of a joint bid have been around for weeks, as Brazilian carriers dealing with slowing growth and price wars bet consolidation will improve their fortunes.
- Markets are responding well to the report. Oi merger partner Portugal Telecom (PT +8.9%), whose main asset is a stake in the combined company, is also rallying.
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