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Friday, January 23, 2015

Brazil telecom firms set for bid for TIM after Portuguese deal, (NYSE: OIBR), (NYSE: OIBR-C), (NYSE: TEF)

A group of Brazilian telecommunications companies is ready to make a bid for wireless carrier TIM Participa��es SA in the short term, a source with knowledge of the situation told Reuters, after Oi SA secured shareholder approval for the sale of its Portuguese assets. Shareholders at merger partner Portugal Telecom SGPS approved the 7.4 billion euro ($8.3 billion) sale to Altice SA over stiff opposition from a minority of shareholders.With that hurdle cleared, said the source Oi and the Brazilian units of Mexico's America Movil SAB and Spain's Telefonica SA can move ahead with a joint offer for TIM, coordinated by investment bank Grupo BTG Pactual SA.Oi said on Thursday that the sale of operations in Portugal strengthened its balance sheet and helped it to participate in the consolidation of the Brazilian market.Telefonica Brasil failed to comment on the negotiations. Representatives for America Movil subsidiary Claro could not be reached for comment.

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 18.85% or $0.46/share to $2.90. In the past year, the shares have traded as low as $0.40 and as high as $18.50. On average, 1866460 shares of OIBR exchange hands on a given day and today's volume is recorded at 14350235.

Shares of OIBR-C traded higher by 12.69% or $0.34/share to $3.02. On average, 0 shares of OIBR-C exchange hands on a given day and today's volume is recorded at 1237398.

Telefonica SA is a Spain-based company active in the telecommunications and digital services sectors. Shares of TEF traded higher by 0.69% or $0.1/share to $14.56. In the past year, the shares have traded as low as $13.27 and as high as $17.51. On average, 1554290 shares of TEF exchange hands on a given day and today's volume is recorded at 1451917.



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