TI to buy controlling stake in Telecom Argentina

9 Sep 2003

Telecom Italia has agreed to buy a call option for USD60 million giving it the right to purchase a controlling stake in Telecom Argentina between 31 December 2008 and 31 December 2013. The deal hinges on an agreement by France Télécom to sell its 50% stake in Nortel Inversora, which controls Telecom Argentina, to Argentinian group Werthein. Telecom Italia currently owns the remaining 50% of Nortel Inversora. Under the deal France Telecom will sell a 48% stake in Inversora to Werthein, with the rest to follow between 2009 and 2014. Telecom Italia will then pay US60 million to Werthein to acquire its 50% stake in the company.