UPDATE 1-Brazil's Oi gets proposal from LetterOne for tie-up with rival
(Adds information on proposal)
By Guillermo Parra-Bernal and Alberto Alerigi Jr
SAO PAULO Oct 26 (Reuters) - LetterOne Group, the investment firm controlled by Russian billionaire Mikhail Fridman, could pour up to $4 billion into Oi SA, should Brazil's No. 4 wireless carrier combines with rival TIM Participações SA .
Rio de Janeiro-based Oi said in a securities filing on Monday that financial advisor Grupo BTG Pactual SA handed over the LetterOne proposal to the company's management and board. Under terms of the plan, LetterOne wants exclusivity terms to help negotiate a tie-up between Oi and TIM.
Shares of Telecom Italia Spa, which controls 67 percent of TIM, jumped as much as 2 percent on news of the LetterOne proposal.
Oi's security filing comes weeks after TIM, which is Brazil's No. 2 wireless carrier, denied being in talks over a potential combination with debt-laden Oi.
Earlier this month, Brazilian newspaper Valor Econômico reported that BTG Pactual was engaged in talks with Fridman's LetterOne, which mainly invests in energy and technology, over how to facilitate a Oi-TIM merger. LetterOne oversaw about $25 billion as of the end of last year.
"The proposal is being properly analyzed by the company jointly with its legal and financial advisors," Oi Chief Financial Officer Flavio Guimarães was quoted as saying in the filing.
Efforts to contact TIM and Oi for comment on the LetterOne proposal were unsuccessful. Continuación...