TI to discuss Telecom Argentina sale at board meeting

20 Nov 2009

The board of directors of Italian telecoms operator Telecom Italia (TI) is set to discuss on 2 December whether to sell its stake in Argentine unit, Telecom Argentina, Dow Jones Newswires reports, citing a group of minority investors in the Italian media. The report adds that Asati, the association which represents TI’s minority shareholders, has reportedly called on representatives of Telco, the holding company through which Telefonica owns its minority stake, to abstain from voting during the 2 December board meeting. The association said it was against the sale because TI’s international expansion should include South America, Argentina and Brazil. Asati also said that the company’s stake in Telecom Argentina is worth more than EUR900 million (USD1.34 billion). According to TeleGeography’s GlobalComms database, Argentina’s antitrust agency, the National Commission for the Defense of Competition (CNDC), determined in late August that TI’s 50% stake in Sofora, the holding company that controls Telecom Argentina, violates antitrust legislation as Spain’s Telefonica, which took a 24.7% stake in the Italian firm, already owns fixed line operator Telefonica de Argentina.