A shareholder in TIM Brasil has filed a lawsuit against the majority owner, Telecom Italia, criticising its running of the operator, and has demanded unspecified damages for R$10bn (US$5bn) of lost market value.
In a widely reported statement to the…
A shareholder in TIM Brasil has filed a lawsuit against the majority owner, Telecom Italia, criticising its running of the operator, and has demanded unspecified damages for R$10bn (US$5bn) of lost market value.
In a widely reported statement to the press, JVCO Participacoes alleged that Telecom Italia misused its majority 67% stake and caused losses to both shareholders and the operator.
JVCO is the investment vehicle of Brazilian entrepreneur Nelson Tanure. Tanure owned Intelig which was bought up by TIM for a reported US$296m in 2009. As part of that deal his JVCO investment vehicle acquired a 6.15% stake in TIM.
TIM’s CEO Luca Luciani resigned in May following corruption charges levelled against him in his native Italy resulting from his previous role at Telecom Italia.
The company was also banned from selling new contracts by regulator Anatel for a period in July after customer complaints.
JVCO also criticised how the company handled its tax and debt.
In a statement TIM said it would address the allegations in court and said that its financial statements were solid, transparent and independently audited.
Shares in TIM were trading at around US$33 on the NYSE in April, but at close yesterday they were down at US$17.65.
Telecom Italia did not comment but referred to the statement issued by TIM Brasil.
