Finance Ministry blocks TI’s plans

11 Mar 2004

According to BN Americas, Brazil’s Finance Ministry has advised the antitrust authority CADE not to allow Telecom Italia (TI) to recoup its full ownership of Brasil Telecom. The decision was based on the premis that there would be a conflict of interest between Brasil Telecom and Telecom Italia’s existing mobile units, which could damage the wireline operator. Telecom Italia reduced its ownership of Brasil Telecom from 37% to 19% in September 2002, in order to again permission to launch wireless operations on a national basis. Since that date, however, it has been blocked from buying back the stake.