Telecom Italia moved toward a formal bid for debt-ridden Brazilian operator Oi Group’s mobile assets, with its board approving a full examination of its local unit’s plan of action.

In a statement, Telecom Italia said the board had granted CEO Luigi Gubitosi “full powers to examine and approve the final terms” of a binding offer for Oi prepared by its TIM Participacoes subsidiary over the past few months.

Telecom Italia was linked to a move for Oi in September 2019, although the Italian company at the time denied these reports. The Brazilian operator filed for bankruptcy in 2016.

In March, TIM Participacoes said it was mulling a joint bid for Oi with Telefonica, though Telecom Italia made no reference to this in its latest statement.

America Movil has also been mooted as a potential acquirer: during a Q2 earnings call yesterday (15 July), executives said Oi would be a “good fit” for its operations in Brazil.