UPDATE 1-Telecom Italia investor Fossati says TIM Brasil won't go cheap
* Telecom Italia at crossroads in Brazil after GVT bid fails
* Fossati welcomes Vivendi as likely Telecom Italia investor
* Says Tel. Italia should consider keeping Argentina stake (Adds more comments, context, comments on Telecom Argentina)
By Stefano Rebaudo
MILAN, Sept 2 (Reuters) - Telecom Italia investor Marco Fossati said on Tuesday any offer for TIM Brasil should value the Brazilian wireless company at around 11 times core earnings, or twice its current market value of 10 billion euros ($13 billion).
Takeover activity in Brazilian telecoms is heating up after Grupo Oi unveiled plans last week to bid for 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.
"Otherwise we will not take it into consideration," said Fossati, the second-largest investor in Telecom Italia behind Telefonica with a stake of just under 5 percent held through holding Findim.
Telecom Italia CEO Marco Patuano, who is trying to get the company's towering debts under control and fund network improvements in Italy, has said he would consider selling TIM Brasil if the price is high enough. Continuación...