Italian incumbent Telecom Italia (TI) might cancel the planned sale of its Telecom Argentina stake to US-based investment firm Fintech, should the country’s government take too long to clear the deal, CEO Marco Patuano reportedly hinted on…
Italian incumbent Telecom Italia (TI) might cancel the planned sale of its Telecom Argentina stake to US-based investment firm Fintech, should the country’s government take too long to clear the deal, CEO Marco Patuano reportedly hinted on Saturday.
The company was due to finalise the US$960m deal by early August but has since extended the sale deadline twice while waiting for regulatory approval. It has now been set for 25 September.
Speaking on the sidelines of the Ambrosetti forum meeting in Cernobbio, near Milan, Patuano said that the deal cannot be put off indefinitely and may have to be reconsidered, according to a Reuters report.
Last November, management agreed to sell TI’s 22.7% interest in Telecom Argentina to Fintech, the vehicle of Mexican investor David Martinez, which holds a significant amount of Argentina’s sovereign debt as well as a stake in local cableco Cablevision.
The Telecom Argentina transaction is part of a wider strategy to reduce TI’s €32bn debt, while focusing its efforts on organic growth by upgrading its domestic assets.
Patuano also stressed that Brazilian mobile operator TIM Brasil remained a core asset, although he did not rule out a potential sale.
Last month, TI lost a bid for the acquisition of Brazilian broadband unit GTV from France’s Vivendi, which entered into exclusive negotiations with Spain’s Telefonica.
If successful, the deal will see Telefonica combine its Vivo unit, Brazil’s largest mobile operator, with GVT.
Analysts have therefore speculated that TIM might be sold to another Brazilian telco in order to remain competitive. Already, smaller wireless player Oi has expressed its interest in the asset while Vodafone is reportedly looking at entering Brazil.
