Vodafone looking to buy one of Brazil's top 3 carriers - reports

After expectations that it would be seeking investments in emerging markets, European carrier Vodafoneis said to be considering acquiring one of Brazil's top three mobile carriers, Brazilian paper O Estado de S. Paulo reported.

The top three operators are Telefónica's Vivo, América Móvil's Claroor Telecom Italia's TIM, which each hold over 20% of the local market.

The most likely candidate for a buyout is TIM Brasil, which has been the subject of rumors of a sale by its controlling company for several months.

Vodafone currently operates in Brazil in the corporate and machine-to-machine (M2M) segments, following a 2013 agreement with Brazilian telecoms service provider Datora.

The paper claims to have had access to a document about a meeting between Brazilian authorities and Vodafone officials which allegedly took place at the Brazilian embassy in London on July 31.

According to the reports, Vodafone is not interested in participating in Brazil's mobile telephony sector through the acquisition of 4G licenses in the upcoming 700MHz auction, as expected by the government, but instead through the acquisition of companies.

Brazil is considered one of the most disputed mobile markets in the world, with four operators each accounting for around 20% of the market each. After the top three companies, Brazil's Oifollows with an 18.5% market share.