Telecom Argentina soars; is Telecom Italia planning to sell its stake?

|About: Telecom Argentina S.A. (TEO)|By:, SA News Editor

Shares of Telecom Argentina (TEO +8.1%) are up sharply, even though no news has hit the wires.

54.7% of TEO shares are owned by Nortel Inversora (NTL +7.6%), itself 68% owned by Telecom Italia (TI) and 32% owned by the Werthein Group. (20-F)

One possible reason for today's jump is the potential of a sale by Telecom Italia of its 37.2% indirect stake in TEO, as the Italian giant contends with the threat of a credit downgrade. The beleaguered telco recently ruled out floating a stock offering as a means to pare its onerous €28.8B net debt load, and has nixed a number of other strategic alternatives.