Telefonica says no plans to take control of Telecom Italia

MILAN Thu Nov 14, 2013 6:19am EST

A man talks on a mobile phone as he walks past Spanish telecom group Telefonica's flagship store in central Madrid November 8, 2013.

Credit: Reuters/Sergio Perez

MILAN (Reuters) - Telefonica (TEF.MC) will not exercise an option to increase to 100 percent its stake in Telco, the holding company that controls Telecom Italia (TLIT.MI), the chairman of the Spanish telecoms group told an Italian newspaper on Thursday.

In his first interview since Telefonica agreed on a deal to gradually take over its Italian rival by buying out co-shareholders in Telco, Cesar Alierta said he expected other Telco shareholders to keep some or all of their stakes until February 2015. That is when a shareholder agreement among investors in Telco expires.

"The structure of the new accords is very clear: Telefonica cannot own more than 49 percent of Telco," he told business daily Il Sole 24 Ore. "We have no intention of exercising the call (option)."

Alierta ruled out a merger between Telefonica and Telecom Italia.

"There is no need for a merger between Telefonica and Telecom, and this is not under consideration," he said.

He also said there were no plans to merge Telecom Italia's Brazilian unit TIM Participacoes (TIMP3.SA) with Telefonica's local unit Vivo (VIVT3.SA).

Telefonica reached a deal in September with its Italian partners in Telco - insurer Generali (GASI.MI) and banks Intesa Sanpaolo (ISP.MI) and Mediobanca (MDBI.MI) - allowing it to take over the investment vehicle starting from 2014.

Telco controls Telecom Italia with a 22.4 percent stake and appoints a majority of board members at the phone group.

Following the Telco deal, Telecom Italia named Marco Patuano as new CEO and approved a new business plan. Minority investors accused the board of only looking after the interests of key shareholders.

The 4 billion-euro, three-year plan will cut Telecom Italia's debt to below 2.2 times core earnings while boosting investments in ultra broadband and 4G mobile networks. Alierta said the plan was "a good start".

He added it was important for Telecom Italia to develop its business through investment in high-speed networks.

On Thursday, Telecom Italia agreed to sell its entire stake in Telecom Argentina (TEC2.BA) to Fintech Group for $960 million.

(Reporting Danilo Masoni and Valentina Za)

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TIM CEO says Telecom Italia not trying to sell: paper

SAO PAULO | Mon Oct 14, 2013 9:32am EDT

SAO PAULO (Reuters) - Brazilian phone company TIM Participaçoes SA is not up for sale, its chief executive told a local newspaper, denying reports that Telecom Italia SpA wants to sell its 67 percent stake.

A sale of Brazil's No. 2 wireless company is one option being considered by Telecom Italia's new chief executive, Marco Patuano, a person familiar with the matter told Reuters last week. Patuano is under pressure from Telecom Italia's top shareholder, Spanish group Telefonica SA, to cut debt through asset sales.

TIM's Chief Executive Rodrigo Abreu in an interview published on Monday reiterated comments made in a filing from Telecom Italia last Wednesday that no sale process has started.

"The controlling shareholder made it absolutely clear that there is no sale process of TIM Brazil ongoing, formally or informally," Abreu told Estado de S. Paulo. A spokeswoman for TIM confirmed the contents of the interview.

Abreu said for TIM's situation to change, Telefonica would need to get approval to buy more shares with voting rights in Telco, a holding company now controlled by Telefonica.

"Now, nothing changes. Any additional increase would need approval from Italian, Brazilian and Argentine authorities."

TIM competes directly with Telefonica in Brazil. Analysts say selling it or Telecom Argentina could help raise badly needed capital for Telecom Italia, a fix favored by Telefonica.

Abreu said TIM does not share Telecom Italia's high debt burden, pointing to the acquisitions of smaller telecom firms Intelig and AES Atimus to improve its infrastructure and offer fixed broadband services.

(Reporting by Caroline Stauffer; additional reporting by Brad Haynes; Editing by Theodore d'Afflisio)

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às 20:50

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Telecom Italia likely to name new chairman on November 7: source

Franco Bernabe, Telecom Italia chairman and CEO, poses in his office in Rome, April 19, 2013.

Credit: Reuters/Alessandro Bianchi

MILAN | Thu Oct 10, 2013 2:06pm EDT

MILAN (Reuters) - Telecom Italia is likely to decide on former chairman Franco Beranbe's successor on November 7, when its board meets to discuss a new business plan, a source close to the matter said.

"A list of candidates will be presented to the board at the next meeting," the source told Reuters, adding that the board would be asked to take a vote at the meeting, which would take place on November7.

Bernabe resigned earlier in October after a strategy clash with core shareholders and his role has been taken on an interim basis by deputy chairman Aldo Minucci.

According to the source, Telecom Italia needs to appoint a permanent chairman to start a new reorganization plan.

Telecom Italia could not be reached for comment.

Sources close to the situation have told Reuters Poste Italiane CEO Massimo Sarmi has been a frontrunner to replace Bernabe as chairman.

Telecom Italia's new chief executive Marco Patuano, who took Bernabe's executive powers, is expected to unveil a business plan outlining the future of its South American units and a possible corporate restructuring in Italy.

(Reporting by Stefano Rebaudo, writing by Danilo Masoni, editing by Paola Arosio and Elaine Hardcastle)

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