Salem Radio Network News Thursday, October 6, 2022

Science

TIM, Vivo, Claro seek $606 million Brazil Oi deal haircut

SAO PAULO (Reuters) -TIM SA, Telefonica Brasil and Claro have asked that the price of their deal to buy rival telecom Oi SA’s mobile operations in Brazil be lowered by 3.2 billion reais ($605.05 million), securities filings showed on Monday.

Telecom Italia’s TIM, America Movil’s Claro and Telefonica’s Vivo had agreed to acquire Oi’s mobile operations in an auction in late 2020 with a joint bid of about 16 billion reais.

However, post-deal analysis showed the need for an adjusted closing price, TIM said in a securities filing, citing divergences in working capital, capital expenditure and net adds data that were seen in documents available only after closing.

In a separate filing, Oi said it strongly disagreed with the request to cut the price by about a fifth, which it dubbed as based on technical and procedural errors, and that it will take measures to contest it.

($1 = 5.2888 reais)

(Reporting by Gabriel Araujo; Editing by Christian Plumb)

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