TI considers Plan B if sale of Argentine unit falls through

12 Sep 2014

Telecom Italia (TI) is considering establishing a new unit to oversee its operations in Latin America if the sale of its Argentine unit cannot be completed, writes Bloomberg, citing people with knowledge of the matter. Last November the Italian company agreed to sell its entire controlling interest in Telecom Argentina to Mexican billionaire David Martinez’s investment company Fintech for USD960 million, as it seeks to cut its debt in the face of rising competition in its domestic market and the economic downturn in Europe. Since then, TI has agreed to extend the deadline to obtain regulatory approval for the sale twice, most recently to 25 September. In the event of the deal falling through, the creation of a new division would allow TI to extract synergies from Telecom Argentina and its Brazilian subsidiary TIM Participacoes (TIM Brasil), the unnamed sources said, adding that no final decision has been made.

Argentina, Telecom Argentina (incl. Cablevision), Telecom Italia (TIM), TIM Participacoes (TIM Brasil)