TI backs away from sale of TIM Brasil

20 Dec 2006

Telecom Italia (TI) is reported to be considering abandoning plans to sell its Brazilian mobile operation TIM Brasil, according to Dow Jones Newswires quoting people close to the situation. The volte face, however, is more to do with a reassessment of the unit’s strategic value rather than a lack of interest from would-be suitors, and discussions about the company’s future have led to friction within the TI board, leaving some to claim the friction could result in the resignation of CEO Riccardo Ruggiero. The TI supremo is said to be against the sale of TIM Brasil and the Italian newspaper La Repubblica yesterday reported that Ruggiero may leave the firm after its forthcoming restructuring into three business units – fixed line, mobile and networks – a move that is being proposed by deputy chairman Carlo Buora. The Italian operator owns 100% of TIM Brasil, the 81.2% shareholder of TIM Participacoes, the company’s main operating unit. Offloading the Brazilian asset would help reduce TI’s debt, but would also remove one of its key revenue generators.

Brazil, Telecom Italia (TIM), TIM Brasil