Argentinean cabinet chief Anibal Fernandez told local press yesterday that the government has no plans to nationalise Telecom Argentina, but that it will take all necessary steps to end the local monopoly.
Fernandez said that the government never meant…
Argentinean cabinet chief Anibal Fernandez told local press yesterday that the government has no plans to nationalise Telecom Argentina, but that it will take all necessary steps to end the local monopoly.
Fernandez said that the government never meant to nationalise Telecom Argentina, and that its sole goal is for either Telefonica or Telecom Italia to comply with the order to sell off a stake. He added, though, that whatever decision needs to be taken now, will be taken.
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. In early January, Telecom Italia was informed it had until February 25 to sell off its stake in Telecom Argentina, a decision which Telecom Italia shareholders instantly appealed against.
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. Since then, the Argentine government has warned it could nationalise telco and would take any decision on to higher courts, if necessary, to end the monopoly.
Credit Suisse is advising Telecom Italia on the sale.