- Amid continuing speculation about Telecom Italia (MI:TLIT)'s (TI -2.1%) intentions for Brazilian unit TIM Participações (TSU +0.9%), TI chief Flavio Cattaneo says TIM is a "good asset" as the company looks to the struggling nation for growth prospects.
- "Brazil is fundamental because Brazil today is a good asset for us," Cattaneo said in Barcelona. As CEO, he had replaced Marco Patuano, who saw increasing differences with the growing ownership of Vivendi (PA:VIV) (OTCPK:VIVHY -1%) over whether to sell the Brazilian unit (Patuano wanted to hold on to it).
- Listed companies in Brazil are undervalued compared with unlisted companies, he says: M&A values at 8-10 times EBITDA while listed companies are more like 4 to 4.5 times EBITDA.
- He reiterated a lack of interest in merging with now-bankrupt Oi (NYSE:OIBR), whose mountain of debt is the issue: Last month, he had said "If Oi manages to split its debt from its assets ... we will be watching."
Original article