TIM, Vivo, Claro seek $606 mn cut in Oi deal

TIM, Telefonica and Claro have asked that the price of their deal to buy Oi’s mobile operations in Brazil be lowered by 3.2 billion reais ($605.05 million), securities filings showed on Monday.
Oi Brazil networkTelecom Italia’s TIM, America Movil’s Claro and Telefonica’s Vivo had agreed to acquire Oi’s mobile operations in an auction in late 2020 with a joint bid of about 16 billion reais.

However, post-deal analysis showed the need for an adjusted closing price, TIM said in a securities filing. There are divergences in working capital, capital expenditure and net adds data that were seen in documents available only after closing.

Oi in a separate filing said it disagreed with the request to cut the price by about a fifth, which it dubbed as based on technical and procedural errors, and that it will take measures to contest it.

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