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Friday, October 31, 2014

America Movil, Telefonica, Oi to bid for Brazil's TIM -report, (NYSE: OIBR), (NYSE: OIBR-C), (NYSE: TEF), (NYSE: TI), (NYSE: TI-A)

Mexico's America Movil SAB, Spain's Telefonica SA and Brazil's Grupo Oi SA agreed to place a bid for and to break up TIM Participa��es SA, Brazil's second-largest wireless carrier, Folha de S. Paulo reported on Friday without saying how it obtained the information. According to Folha, the accord between the three companies was not fully finalized, but they agreed in principle to pay 31.5 billion reais ($13.1 billion) for TIM, the Brazilian unit of Telecom Italia SpA. That price would include a 5 percent premium payout to controlling and minority shareholders of TIM, the paper added.Investment banking firm Grupo BTG Pactual SA is handling the transaction, Folha added. A formal offer will be placed to shareholders of Telecom Italia, which owns about two-thirds of TIM Participa��es, the paper said.Breaking up TIM would give rivals more breathing room in Brazil's crowded four-way mobile market, where they have struggled to add customers, invest in high-speed networks and protect profits in a stagnant economy.Under the deal, America Movil would keep 40 percent of TIM's business, with Oi taking 28 percent and Telefonica about 32 percent, Folha said. According to the newspaper, Telecom Italia proposed to merge TIM Participa��es with Oi, but the plan did not move forward.

Oi SA, formerly Brasil Telecom SA, is a Brazil-based holding company engaged in the provision of Switched Fixed-line Telephony Services (STFC) domestically and internationally. Shares of OIBR traded higher by 8.81% or $0.0405/share to $0.50. In the past year, the shares have traded as low as $0.40 and as high as $1.97. On average, 11540800 shares of OIBR exchange hands on a given day and today's volume is recorded at 6938836.

Shares of OIBR-C traded higher by 8.33% or $0.04/share to $0.52. On average, 0 shares of OIBR-C exchange hands on a given day and today's volume is recorded at 483623.

Telefonica SA is a Spain-based company active in the telecommunications and digital services sectors. Shares of TEF fell by 0.2% or $-0.03/share to $14.69. In the past year, the shares have traded as low as $13.76 and as high as $17.63. On average, 1065450 shares of TEF exchange hands on a given day and today's volume is recorded at 1258554.

Shares of TI traded higher by 0.83% or $0.09/share to $10.87. In the past year, the shares have traded as low as $8.80 and as high as $13.54. On average, 145292 shares of TI exchange hands on a given day and today's volume is recorded at 80345.

Shares of TI-A traded higher by 0.12% or $0.01/share to $8.63. In the past year, the shares have traded as low as $7.05 and as high as $10.62. On average, 43758 shares of TI-A exchange hands on a given day and today's volume is recorded at 49860.



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