MADRID (dpa-AFX) - Telecom Italia SpA (TIAOF.PK, TI) wants at least 13 billion euros or $16.8 billion for its controlling stake in Brazilian mobile telecommunications services provider TIM Participações S.A. (TSU) that has attracted the interest of Oi SA (OIBR) and Mexican telecom giant America Movil S.A.B. De C.V. (AMX, AMOV), Bloomberg reported citing two people familiar with the matter said.
Quoting the people, the report indicated that the price would give Tim a total enterprise value of about 20 billion euros, about 73 percent more than its value at yesterday's close in Sao Paulo. The price would be 11 times Tim's 2013 earnings before interest, taxes, depreciation and amortization, similar to what Spanish telecom operator Telefonica (TDE.L, TEF) offered for Brazil's GVT last month.
Oi reportedly said in August it was considering an offer for its rival, and America Movil said yesterday it plans to enter talks to make a joint bid with Oi.
However, the report quoted the people as saying that Telecom Italia hasn't started a process to sell Tim.
Telecom Italia Chief Executive Officer Marco Patuano reportedly said last week that Tim is a 'core asset' and the company will speed up investments in Brazil to improve its mobile-broadband networks.
Copyright RTT News/dpa-AFX