Brazil's Oi In Talks to Sell Mobile Unit to Telecom Italia, Telefonica

Brazilian telecommunications firm Oi SA is in talks with Spain’s Telefonica SA and Italy’s Telecom Italia SpA to sell its mobile network to avoid insolvency, five people with knowledge of the matter said, Reuters reported. Oi has been struggling to turn around its business since filing for bankruptcy protection in June 2016 to restructure approximately 65 billion reais of debt. Brazil’s largest fixed-line carrier expects to raise more than 10 billion reais ($2.4 billion) by selling its mobile operations, according to two of the sources, who spoke on condition of anonymity because the talks are confidential. Oi reported some 35 million mobile clients in its most recent earnings. Proceeds from the sale would be used to boost fiber-to-home (FTTH) broadband service, considered key to the company’s growth, according to its strategic plan in July. Read more