NEW YORK (TheStreet) -- Shares of TIM Participacoes (TSU) were gaining 6.8% to $23.73 Wednesday following a report that Oi (OIBR) , America Movil's (AMX) Claro, and Telefonica (TEF) are planning to make a joint bid for the Brazilian wireless carrier.
The joint bid from the three companies would value TIM at about $15 billion, according to Bloomberg. The bid for TIM Participacoes would be made by Grupo BTG Pactual which would act as a financial vehicle and then split the company in three.
Oi would reportedly gain own 25% of TIM, with Claro and Telefonica dividing the other 75% between them.
Must Read: Warren Buffett's 25 Favorite Stocks
TIM parent company Telecom Italia believes the Brazilian company should be valued at 20 billion euros ($25 billion) or more, according to Bloomberg. The Italian carrier recently received authorization from its board of directors to explore a merger between TIM and Oi.
TheStreet Ratings team rates TIM PARTICIPACOES SA as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate TIM PARTICIPACOES SA (TSU) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and disappointing return on equity."