Boston, MA 10/14/2013 (wallstreetpr) – BTIG LLC and Brades Investment Partners cited Vodafone Group Plc (ADR) (NASDAQ:VOD) as a possible suitor for Tim Participacoes. The company’s shares are pitching due to the assumptions that they would let local competitors take over. Speculations say that this will bring in check the competition in the wireless market. The Milan-based mobile company, Telecom Italia SpA, the parent company of Tim estimated the value of its 67% stake in the latter to be around $12 billion. TIT is looking forward to get rid of a part of the $39 billion debt by selling away the company. Tim moved up by 40% in Sao Paulo trading soon after this announcement this year.
The Rio-de Janerio based company Tim climbed a one and half year high along with the three other local rivals, Telefoica Brasil SA, America Movil SAB, Oi SA. According to records, Tim gained the most among phone companies this year, rising by 2.9% in Sao Paulo. This is the highest since April 2012. The others went up by 1.4%, 2.6% and 2.3%, respectively. If any one of these companies but Tim completely or all of these companies hold a part of the company, either ways, the wireless market will be freed from competition to a great extent. The market will be divided, then, only among three, instead of the present four. However, none of the four companies are available for any comments. This is perhaps because as of now, there has been no formal or even informal procedure for the sale of the company.
As of now, the estimation by Telecom Italia of the valuation of the Brazilian telecom operator is only in initial stages. The parent of Tim is the biggest stakeholder of the company and would prefer to sell off the company in different units instead of a direct sell off of the company. Among others, Vodafone and AT&T did not comment anything on their interests in buying Tim.
