TIM Participacoes (NYSE:TSU)
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Brazilian mobile-phone company TIM Participacoes SA (TSU) signed an accord to buy the control of local long-distance operator Intelig, the company said late Thursday in a statement.

TIM, which is a subsidiary of Telecom Italia S.p.A. (TI), said that it will pay the acquisition with its shares and it will increase its capital.

Intelig's controllers will receive up to 6.15% of TIM Partcipacoes' preferred shares and others 6.15% of the company's common shares.

"Intelig is undergoing a process of corporate and financial restructuring, particularly involving a composition with its main creditor banks in order to complete the settlement of its liabilities, as well as the capitalization of the credits previously held by its former controlling holders, which is a condition precedent for the implementation of the transaction," TIM said.

After the conclusion of operation, Intelig's controller JVCO Partcipacoes will name a member to TIM's board.

"The transaction seeks to optimize the operational and support areas of TIM and Intelig, resulting in a more rational deployment of the resources available, a cost reduction, productivity gain, combination of commercial efforts and efficient use of synergies between the companies," TIM said.

The operation also must be approved by the Brazilian Antitrust System Administrative, or SBDC and local telecom watchdog Anatel.

-By Rogerio Jelmayer, Dow Jones Newswires; 5511-2847-4521; rogerio.jelmayer@dowjones.com