Italian incumbent Telecom Italia has received the go-ahead to increase its shareholding in Sofora, the controlling company of Telecom Argentina, from 50% to 58%.
The country’s National Commission for the Defence of Competition (CNDC) approved the deal,…
Italian incumbent Telecom Italia has received the go-ahead to increase its shareholding in Sofora, the controlling company of Telecom Argentina, from 50% to 58%.
The country’s National Commission for the Defence of Competition (CNDC) approved the deal, after TI proved that its own indirect owner, Spanish incumbent Telefonica, would have no influence or participation in any part of TI’s Argentinean operations. There had been competition concerns because Telefonica controls the country’s largest fixed-line telco, Telefonica Argentina.
Number two fixed-line operator Telecom Argentina has until now been a 50:50 joint venture between TI and local investment group Grupo Werthein. In 2009, the two signed an agreement giving TI an option to up its stake by 8%. However, Werthein family had been resisting a sale – leading to bad blood and lawsuits between the two entities.
In August, Werthein did agree to let TI exercise its option, leading TI to drop its legal action, and to allow a new option, under which TI can buy the rest of its stake in 2013.
TI said the deal will result in a special gain of about E250m (US$351m) in its fourth-quarter 2010 consolidated results.
