Telecom Italia investor Fossati says TIM Brasil won't go cheap
MILAN, Sept 2 (Reuters) - Telecom Italia investor Marco Fossati said any offer for TIM Brasil should value the Brazilian wireless operator at around 11 times core earnings, or twice its current market value of 10 billion euros ($13 billion) .
Consolidation in Brazil is heating up after Grupo Oi unveiled plans last week to take over TIM Brasil and Telefonica started exclusive talks to buy broadband operator GVT from France's Vivendi.
"If Brazilian operators want to reduce the number of players to three from four, bagging enormous synergies, it would be better if they presented an offer that values TIM Brasil at 11 times its EBITDA," Fossati told Reuters in a phone interview on Tuesday.
"Otherwise we will not take it into consideration," he said.
The Italian businessman, the second largest investor in the Italian group with a stake of just under 5 percent, said the exit of Telefonica from Telecom Italia was positive and he welcomed the possible entrance of Vivendi in the Italian incumbent's capital. (1 US dollar = 0.7621 euro) (Reporting by Stefano Rebaudo, writing by Danilo Masoni)
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