Court scraps deadline for TI to sell Telecom Argentina stake

18 Jan 2010

Dow Jones Newswires reports that an appeals court in Argentina has suspended the government’s 25 February 2009 deadline by which Telecom Italia (TI) had been ordered to sell its 50% stake in Sofora, the holding company that controls Argentine fixed line incumbent Telecom Argentina. On announcing the news of the court’s ruling, TI’s chief executive, Franco Bernabe, said: ‘This shows that the justice system works in Argentina and that it always rules in our favor in important circumstances.’ As reported by CommsUpdate last week, TI appealed a decision by the Argentine government ordering it to sell its stake in Sofora by 25 February or face intervention in the process. In August 2009 Argentina ruled that TI’s shareholding in Telecom Argentina violated antitrust legislation and ordered the company to sell the 50% stake, as Spain’s Telefonica, which acquired a 24.7% stake in the Italian firm through the Telco consortium in October 2007, already owns Argentina’s other fixed line operator Telefonica de Argentina causing cross-ownership issues.