The Argentinean antitrust council, the CNDC, is believed to have submitted an appeal to a lower court ruling, which suspended the timeline set by the government, stating that Telecom Italia must sell off its 50% stake in Sofra, the holding company which…
The Argentinean antitrust council, the CNDC, is believed to have submitted an appeal to a lower court ruling, which suspended the timeline set by the government, stating that Telecom Italia must sell off its 50% stake in Sofra, the holding company which controls Telecom Argentina.
The appeal was allegedly launched by the CNDC in an appellate court, and reports state that if the court rejects the appeal, the government may take the matter to the country’s Supreme Court.
Argentinean authorities initially ordered Telecom Italia to sell off its indirect stake in Telecom Argentina after it was decided that Telecom Italia majority owner Telco, controlled by Telefonica, had too much power on the Argentinean market, as Telefonica also has a standalone business in the country. Telecom Argentina and Telefonica are the two main operators in Argentina.
In early January, Telecom Italia was informed it had until February 25 to sell of its stake in Telecom Argentina, a decision which Telecom Italia shareholders instantly appealed. An appeals court then suspended the timetable by which it must sell the stake, to which the Telecom Italia CEO added that he refused to be forced to sell the stake outright and that the telco will now review the benefit of selling or not selling, based on the offers.
The latest news follows the Argentinean government warning that it would ask its congress to cancel the licence altogether if an antitrust issue gets lodged with the courts. The country’s Planning Minister Julio De Vido stated on local TV that the government will terminate the licence if necessary.
The minister added that the sales process is already begun and offers have been received.
Telecom Italia is advised by Credit Suisse.
