Incumbent Telecom Italia (BIT:TIT) will review its majority investment in Brazilian subsidiary TIM Participacoes (NYSE:TSU) because of the country’s poor economy, CEO Marco Patuano has said.
Incumbent Telecom Italia (BIT:TIT) will review its majority investment in Brazilian subsidiary TIM Participacoes (BVMF:TIMP) because of the country’s poor economy, CEO Marco Patuano has said.
It will address the matter and possible takeover interest for its Inwit (BIT:INW) tower business at a board meeting on 25 September.
Speaking to journalists, Patuano was cited saying that his company needed to “review the strategic plan” of the Brazilian unit, worth some US$5.1bn.
TIM Brasil has long been rumoured as a takeover candidate for the country’s other mobile operators, América Móvil-owned Claro, Telefónica-owned Vivo and incumbent Oi. The three had considered a three-way acquisition of the company, in order to placate regulatory officials.
Until now, Telecom Italia has resisted selling its Brazilian business, which comprises 30% of its overall revenue and has thrived while the Italian business has struggled.
However, the company now appears to be placing its bet on domestic high-speed broadband, over which it will deliver high-quality content via partnerships with Mediaset, Sky, Netflix and 15.5% shareholder Vivendi.