TI plan to take control of Telecom Argentina thwarted

7 Jan 2009

A move by Telecom Italia (TI) to take control of Telecom Argentina has been frozen by Argentine antitrust agency the National Commission for the Defense of Competition (CNDC), Reuters reports. The commission said the move was aimed at preventing the monopolisation of the country’s telecoms market. Buenos Aires fears that Spain’s largest telco Telefonica, which has a 10% stake in TI, as well as a strong presence in the Argentinean wireless arena will increase its involvement in Telecom Argentina. The CNDC’s resolution also bars TI from buying local investment group Grupo Werthein’s stake in Sofora, the company which controls Telecom Argentina. Gabriele Galateri di Genola, the president of TI, stated during a visit in May 2008 that Telefonica’s indirect stake in his company would not affect the Argentinean market.