UK mobile operator Vodafone has denied Brazilian reports that it is sniffing around TIM, the local mobile operator controlled by Italian incumbent Telecom Italia. Citing unattributed sources, local newspaper O Globo claimed that Vodafone was locked in…
UK mobile operator Vodafone has denied Brazilian reports that it is sniffing around TIM, the local mobile operator controlled by Italian incumbent Telecom Italia. Citing unattributed sources, local newspaper O Globo claimed that Vodafone was locked in discussions with Spain’s Telefonica, which itself owns 24.7% of Telecom Italia.
The paper claimed that Vodafone is pressing Telefonica to sell its shares in TI to the British company, so that Vodafone could take a more active position in the Latin American market. The talks arose after Telefonica won its battle with Portugal Telecom over their joint ownership of Vivo, Brazil’s largest mobile phone operator. The newspaper surmised that Telefonica would have to sell its stake in TI in order to exit TIM to avoid any conflicts of interest. When contacted by Telecomfinance, Vodafone said that its company’s policy is to decline comment on press speculation. However, a person familiar with the matter said that there was no truth in the story, and although Latin America is a market where Vodafone does have partnerships, it does not have any direct corporate ownership there and is not looking to make the region a central focus or target in the short to mid-term.
