Telecom Italia to evaluate any bids for TIM Brasil
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 party.
According to Reuters, the independent director’s reviews could protect Telecom Italia from any accusations of conflict of interest.