Telecom Italia will not sell TIM Brasil
02 December 2013 |
Telecom Italia does not have plans to sell its Brazilian subsidiary, TIM Participacoes, the company told reporters today.
Recent press reports had suggested a sale was imminent but Telecom Italia confirmed in a statement that it has not been in contact with any buyers for the sale of its 67% stake in the Brazilian firm.
"The company reaffirms the strategic importance for the group of its shareholding in TIM Brasil and in the Brazilian market, denying that there are any ongoing contacts with potential buyers," Telecom Italia said in a statement.
"Telecom Italia wishes to make clear that the rumours of presumed plans for the deconsolidation and/or total or partial valuation of the Brazilian asset, described and repeated by journalists, pundits and analysts are inferences wholly without foundation.”
Brazilian authorities are reportedly concerned about competition in the market after Telefónica – TIM’s biggest rival in the country – began processes to increase its stake in Telecom Italia.
Sources close to the matter have reportedly told Reuters that they expect Telefónica to push for the sale or break up of TIM next year.
TIM holds overall market capitalisation in Brazil of around $12 billion but Telefónica’s Brazilian arm, Vivo, is the mobile market leader with 28.7% of the market, compared to TIM’s 27.2%.
Andrea Mangoni stepped down from his position as CEO at TIM Brasil in February this year after less 12 months in the role.