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Friday, December 12, 2014

Telecom Italia decides no need to rush for Oi in Brazil-sources, (NYSE: TSU)

Telecom Italia has concluded it cannot make a move in the expected consolidation of the Brazilian market, where it controls the second biggest mobile operator, until the corporate turmoil abates at prospective merger partner Oi, according to sources familiar with the matter.Oi also needs to cut its debt and costs before Telecom Italia makes a move, one of the sources said.The board of Telecom Italia last month asked CEO Marco Patuano to examine the feasibility of a tie-up between its majority-owned subsidiary TIM Participacoes SA and Oi, without giving a deadline for reporting back.Telecom Italia is aiming for 51 percent of the combined entity, and documents reviewed by its board last month showed potential synergies worth up to 9 billion euros ($11 billion).

TIM Participacoes SA (TIM) is a Brazil-based holding company engaged in the telecommunications segment. Shares of TSU fell by 2.79% or $-0.65/share to $22.62. In the past year, the shares have traded as low as $21.64 and as high as $30.52. On average, 1642350 shares of TSU exchange hands on a given day and today's volume is recorded at 177719.