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Nov. 6, 2013, 3:17 PM
- Sources tell Reuters that Telefonica (TEF +1%), fresh off reaching a deal to eventually take full control of holding company Telco's 22.4% Telecom Italia (TI +3.2%) stake, is set to give its approval to a series of moves meant to improve TI's balance sheet.
- In addition to a sale of TI's 67%-owned Brazilian unit TIM (TSU -2%), ideas on the table are said to include a €2B ($2.7B) capital raise, a dividend cut, and the sale of TI's Argentine unit (TEO -5.1%) and Italian mobile towers.
- No imminent decision is expected regarding the sale of TIM. Brazilian regulators, opposed to selling TSU in full to a rival carrier, are reportedly coming around to the idea of allowing it to be sold piecemeal to them, rather than demanding a sale to an outside party.
- Reuters add "insiders" are concerned Telefonica will unload its TI stake once the TIM sale is finished. Telefonica has been busy trying to pare its debt load by shedding assets in slow-growing European markets, as evidenced by the recent sale of its Czech unit.
- Meanwhile, the EU has opened an antitrust investigation into the €850M sale of Telefonica's Irish unit (O2 Ireland) to rival Hutchison. A decision will be made by March 24, 2014.
Sep. 25, 2013, 1:25 PM
- At a parliamentary hearing in Rome, Telecom Italia (TI -4.8%) reiterated his opposition to a sale of the company's Brazilian and Argentine assets, at least over the near-term. Bernabe argued selling the units, responsible for 40% of TI's 2012 revenue, would hurt the carrier's international profile.
- TIM (TSU -4.8%), TI's Brazilian unit, is joining TI in selling off after rallying yesterday. A downgrade to Hold from Stifel could be contributing to the losses. Telecom Argentina (TEO +0.3%), in which TI owns an indirect 37% stake, is up slightly.
- Bernabe's remarks come a day after Telefonica (TEF +0.8%) announced a deal that could let it eventually take full control of holding company Telco and its 22.4% TI stake. Telefonica, whose Brazilian unit (VIV -2.9%) competes with TIM, is widely believed to be pushing TI to sell TIM to shore up its balance sheet and appease regulator Anatel (previous).
- Bloomberg reports Anatel would prefer TIM be sold in full rather than have its assets sold piecemeal. That could translate into a sale into a major foreign carrier such as Vodafone or AT&T, which in turn would spell tougher competition for Telefonica and fellow Brazilian carriers Oi (OIBR -9.6%), America Movil (AMX), and NII Holdings (NIHD +1.1%).
Apr. 16, 2012, 12:09 PMMore on Argentina's takeover of YPF: The government will send a bill to Congress to take a 51% stake in the oil & gas giant for the "public good," according to an official. The move follows weeks of government pressure for the firm to spend more and pay its investors less. Shares -14%, Repsol (REPYY.PK) -1.7%. | 9 Comments
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Telecom Argentina SA provides fixed-line public telecommunication services, international long-distance service, data transmission and Internet services in Argentina. Its segments include Fixed Services, Personal Mobile Services & Nucleo Mobile Services.
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