Brasil Telecom enters mediation process re: TIM merger agreements

17 Mar 2006

Brazilian fixed line operator Brasil Telecom has initiated arbitration proceedings against Italian mobile group Telecom Italia Mobile (TIM) concerning merger agreements signed in 2005. The telco and its mobile arm Brasil Telecom Celular are looking to annul several agreements with TIM Internacional and TIM Brasil relating to the merger of mobile phone units Brasil GSM and TIM Brasil in April. Brasil Telecom alleges that the agreements break the law and constitute a definite conflict of interests, adding that they are also in breach of shareholders’ agreements, and as such lack the necessary corporate approvals. TIM has declined to comment.

Brazil, Brasil Telecom (BrT), TIM International