Telecom Italia plans to up its Brasil Telecom stake

31 Jul 2003

Telecom Italia (TI) is engaged in talks aimed at raising its stake in fixed line operator Brasil Telecom, according to local media reports. The European telco is holding talks with the Opportunity Fund, with a view to raising its 19.9% stake in Solpart, the holding company which controls Brasil Telcom, to 38%. TI previously held a 37.29% stake in Solpart, but was forced to reduce this to below 20% to gain approval for the launch of its Brazilian GSM operator Telecom Italia Mobile. Before TI can increase its holding in the operator, Brasil Telecom must first meet fixed line development targets set by the regulator.