Telecom Italia could reconsider sale of Telecom Argentina
08 September 2014 | Kavit Majithia
Telecom Italia may be forced to reconsider its sale of Telecom Argentina to investment fund Fintech if the Argentinean government continues to stall on the deal.
Telecom Italia’s CEO Marco Patuano said the financial crisis in Argentina had held up approval of the deal, and it could collapse if the government took any longer to approve it.
Deadline for approval of the deal has now been delayed to September 25, and Telecom Italia is reportedly eager to secure the sale to aid its debts, which stand at approximately €32 billion.
Patuano is looking to raise up to €4 billion from Telecom Argentina, and will use the company to upgrade its domestic assets.
“Our strategy is one of organic growth and we will return to organic growth,” said Patuano.
Telecom Italia is placing a greater emphasis on an exit in Argentina following the company’s failure to secure an acquisition of GVT in Brazil, leaving it exposed to larger rivals in the country.