Brazil's TIM Participa��es SA has hired Banco Bradesco SA's investment banking unit to analyze a potential bid for rival Grupo Oi SA, a source with knowledge of the situation told Reuters on Friday.Telecom Italia SpA, TIM's controlling shareholder, would use TIM as a vehicle to add all or part of Oi's assets in an eventual purchase, said the source, who requested anonymity because the bid is private. TIM and Bradesco declined to comment.Bradesco acted as one of TIM's advisers in its failed bid for GVT SA, the Brazilian broadband provider acquired by Spain's Telefonica SA a few weeks ago. TIM's hiring of Bradesco was first reported by Bloomberg News on Friday.The acquisition of Oi would allow Telecom Italia to strengthen its position in Brazil's highly competitive telecommunications market, which faces imminent consolidation efforts amid a slowing economy and declining profitability.
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 1.94% or $0.0126/share to $0.66. In the past year, the shares have traded as low as $0.51 and as high as $2.09. On average, 15982500 shares of OIBR exchange hands on a given day and today's volume is recorded at 11114969.
Shares of OIBR-C traded higher by 4.82% or $0.0318/share to $0.69. On average, 0 shares of OIBR-C exchange hands on a given day and today's volume is recorded at 392093.
Telefonica SA is a Spain-based company active in the telecommunications and digital services sectors. Shares of TEF fell by 0.73% or $-0.11/share to $14.99. In the past year, the shares have traded as low as $14.86 and as high as $18.05. On average, 1070050 shares of TEF exchange hands on a given day and today's volume is recorded at 745768.
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