According to local press reports, Argentine holding company Compañía Internacional de Telecomunicaciones (Cointel) has sold an 11% stake in fixed line incumbent Telefónica de Argentina (TdA) to its sister company, cellco Telefónica Móviles Argentina, for USD382 million. Cointel, owned by Spanish giant Telefónica Group, is said to be selling the stake to reduce its debt. It remains the majority shareholder in TdA with 51.53%; Telefónica Internacional holds a further 32.25%, with minority investors owning the rest. Telefónica Móviles Argentina is another Telefónica Group company, which offers mobile services under the Movistar brand.
TdA earned 1Q-2007 net profits of ARS101 million (USD32.8 million), up 130% on the ARS44 million it made in the same period in 2006.