Sale of Telecom Argentina in doubt as approval still pending

25 Sep 2014

Telecom Italia (TI) has not yet received regulatory approval for the sale of its Argentine unit to Mexican billionaire David Martinez’s investment company Fintech, a source at the National Commission for the Defense of Competition told Reuters. Last November the Italian company agreed to sell its entire controlling interest in Telecom Argentina to 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. TI’s board is due to meet tomorrow to discuss the deal, a day later than previously expected.

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