According to a source who had direct knowledge about the matter, Vodafone Group Plc would not be bidding for Brazil's Tim Participacoes (TIM) SA. The source also said Vodafone had not held talks with the owners of Tim. The source refused to be identified as the deliberations about the acquisition were private.
The news seemed to refute speculation that the British phone company had planned to buy Telecom Italia's subsidiary. Analysts at Brandes Investment Partners and BTIG LLC had said Vodafone would be one of Tim's potential buyers.
Financial troubles of Telecom Italia, who owned Tim, had contributed to the idea that Brazil's second-biggest wireless carrier would be put up for sale. Vodafone, on the other hand, had enough in its USD130 billion windfall from its stake sale in Verizon Wireless to be used for potential acquisitions.
When asked for comment about the rumored Tim bid, both Vodafone and the spokesman for Telecom Italia refused to provide one to Bloomberg.
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