Regulations dispute will not drive TI from Brazil

10 Jun 2009

Telecom Italia (TI) will not turn its back on the Brazilian market because of a regulatory dispute, its chairman Gabriele Galateri di Genola told Reuters on Tuesday. The TI official went on to say that he planned to meet the country’s minister for communications Helio Costa to discuss the way forward, but that there was ‘absolutely zero talk’ of leaving the country. The Brazilian market regulator contends that TI’s largest shareholder, Telco, has an obligation to launch a bid for the Italian group’s Brazilian subsidiary TIM Participacoes. The regulator says the bid obligation is triggered because of a change of control of TI at the end of 2007 when Telco took its stake. Telco, which owns 24.5% of TI, disagrees.

Brazil, Telecom Italia (TIM)