Telefónica, S.A. (CATS:TEF) is preparing an offer to buy Telecom Italia S.p.A. (BIT:TIT)'s TIM Participacoes S.A. (BOVESPA:TIMP3) , Italian daily Il Sole 24 Ore reported, quoting what it says were reliable sources. Telefonica is at an advanced stage of drafting the offer to buy TIM which could be filed as early as the end January 2014.