Rumour mill: Is Vodafone about to enter Brazil?

While Vodafone executives recently downplayed any expansion of the company's footprint, rumours suggest that it has hired an investment bank to study the possibility of buying a stake in TIM Participacoes, the Brazilian mobile unit of Telecom Italia.

According to local newspapers, Vodafone has held initial discussions with Telefónica, a shareholder of Telecom Italia, which controls TIM. Speculation that TIM has become a takeover target has seen the company's share price rise steadily over the last two months.

One Brazilian analyst prepared to comment said that, after Telefónica's recent takeover of Vivo, investors are betting TIM would be the next target for acquisition. "Within this consolidation process, TIM is now most exposed to being a target," said Rosangela Ribeiro, an analyst at SLW Corretora in Sao Paulo. "There's nothing concrete, nothing official."

Vodafone Chairman John Bond, who survived a vote of no confidence at the company's annual meeting a few weeks ago, said during the AGM that "it's unlikely, but not impossible, to see the expansion of the geographic footprint." Comments made by other Vodafone execs suggested that the company was looking to exit situations like China Mobile and SFR where it has minority holdings.

For more on this story:
- read Bloomberg

Related stories:
Vodafone results boosted by data; company promises new direction
Pressure mounts on Vodafone to revamp business structure
Where next for Vodafone?
Vodafone's board needs a revamp, claims shareholder group

Suggested Articles

Wireless operators can provide 5G services with spectrum bands both above and below 6 GHz—but that doesn't mean that all countries will let them.

Here are the stories we’re tracking today.

The 5G Mobile Network Architecture research project will implement two 5G use cases in real-world test beds.