Brazilian telecom Oi is studying the possible purchase of Telecom Italia’s mobile operator TIM in Brazil, the company said in information provided to Brazil’s CVM securities and exchange commission. Telecom Italia holds some 67% of TIM Participacoes, estimated to be worth around $8.1 billion. Oi said it has hired BTG Pactual bank to review alternatives that could make the purchase possible. The proposal to purchase TIM comes as Oi undergoes a merger process with Portugal Telecom and faces heavy indebtedness. Oi reported debt of about $20 billion for the latest quarter, while TIM posted debt of around $400 million. The buyout proposal also comes as telecom competitors in Brazil prepare to make bids for 4G mobile concessions scheduled for auction on Sept. 30. The government has set a minimum price for six concessions in 700 MHz signal range at $5.3 billion. Meanwhile, government officials this week said the National Development Bank, BNDES, was preparing to help finance purchases made at the auction up to an amount of $8.9 billion.