Telecom Italia's TIM drafts bid for Nextel, confirms CEO

TIM Brasil's parent company Telecom Italia has drafted a non-binding offer to acquire Nextel Brasil, Telecom Italia CEO Amos Genish (pictured) confirmed in an earnings call with analysts and investors.

The board of Telecom Italia has authorized TIM to make a non-binding offer for Nextel, which is controlled by US group NII Holdings, reported Reuters on Friday, citing three sources close to company. According to the report, no decision had yet been made as to whether a bid will be presented or not.

Asked by an analyst if the company was working on a bid, Genish, who used to lead TIM's rival Vivo, confirmed that it was, but said he could not provide further details.

Nextel Brasil is the last standing Latin American operation of NII , following a sequence of divestments made by the US company in the region in recent years. Struggling to keep up with bigger rivals in the competitive Brazilian environment, Nextel is also openly in search of a buyer.

The recent hike in spectrum caps approved by Brazilian telecom regulator Anatel all but dissolved the radiofrequency barriers for the consolidation of mobile operators in the country.

Genish stressed that TIM Brasil is committed to its investment plan through organic growth goals, but could not rule out assets that are seen as complementary to its operations in order to increase the telco's competitiveness.

He added that the most interesting asset sought by TIM is "complementary spectrum".

"We're happy to consider mergers and acquisitions. Complementary spectrum is key in our list of priorities," Genish said on the call.

"If Nextel lies in our path, fine. But it's not a mandatory acquisition," he said.