17 January 2014
Telecom Italia told reporters yesterday that any offer for its Brazilian unit would have to undergo evaluation by independent directors.
Telecom Italia has confirmed
that it has no plans to sell its Brazilian subsidiary, but in a
statement yesterday, the company said that should a bid be put
forward, "related party procedures" would be followed for
review by a committee of independent board members.
TIM Brasil is Telecom Italia’s main source of
growth in Latin America, and there were reports last week that
Telefónica was planning to put forward
a bid for the company, which have since been denied.
Thursday’s decision could mean that any sale of
TIM Brasil would need approval at a special shareholders
meeting, meaning Telefónica – Telecom
Italia’s direct competitor in Brazil –
would be left out of the vote if it was identified as a related
According to Reuters, the independent
director’s reviews could protect Telecom Italia
from any accusations of conflict of interest.