Telecom Italia: no plans to sell Brazilian assets in the short-term

19 Jul 2013

Telecom Italia (TI) has reportedly dismissed suggestions it would look to sell its highly profitable Brazilian telecoms assets to avoid antitrust issues following a move from Spain’s Telefonica to become its main shareholder, Reuters reports people familiar with the matter as saying. Telefonica already owns and operates a profitable enterprise in the Brazilian telecoms market.

Reuters goes on to say that holding company Telco, which controls around 22.4% of TI’s shares, is likely to be dissolved in September 2013, leaving Telefonica with approximately 10% of the Italian company. However, an unnamed source said the idea of TI exiting Brazil is highly unlikely as ‘it would make no sense for Telecom to cede its only asset with a history of growth’.

Brazil, Italy, Telecom Italia (TIM), Telefonica, TIM Participacoes (TIM Brasil)