October 8, 2014 / 1:20 PM / in 5 years

UPDATE 2-Brazil's TIM says Bradesco mandate not for Oi acquisition

(Rewrites throughout, adds share performance, background on earlier report that TIM hired Bradesco for Oi bid)

SAO PAULO, Oct 8 (Reuters) - TIM Participações SA , Brazil’s second-largest wireless carrier, said it hired Banco Bradesco SA to evaluate “strategic alternatives,” but denied the mandate included bidding for rival Grupo Oi SA.

In a securities filing on Wednesday, TIM said assistance from financial consultancies “does not constitute a mandate for the evaluation of an offer to buy Oi.” Reuters reported on Oct. 3 that TIM had hired Bradesco to consider a full or partial acquisition of Oi.

Bradesco acted as one of TIM’s advisers in its failed bid for GVT Participações SA, the Brazilian broadband provider acquired by Spain’s Telefonica SA a few weeks ago.

Shares of TIM shed 1.2 percent to 11.78 reais, while preferred shares of Oi dropped 2.6 percent to 1.61 reais in early Wednesday trading in São Paulo.

The filing comes as speculation mounts that TIM and Oi could be consolidation targets in one of the world’s largest and most competitive telecommunications markets. In August, Oi gave a broad mandate to local investment-banking firm Grupo BTG Pactual SA to study a potential takeover of TIM.

Mexico’s America Movil has said it would be interested in partnering with Oi to bid for TIM. TIM’s parent company, Telecom Italia SpA denied it is considering the acquisition of Oi, as suggested by several media reports in recent weeks. (Reporting by Alberto Alerigi Jr; Writing by Asher Levine and Guillermo Parra-Bernal; Editing by Jeffrey Benkoe and Meredith Mazzilli)

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