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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às 17:32

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Spain's Ezentis wins $100 mln Telefonica contract

A woman walks past Telefonica's building in central Madrid March 26, 2013.

Credit: Reuters/Juan Medina

MADRID | Mon Oct 14, 2013 1:16pm EDT

MADRID (Reuters) - Spain's loss-making telecoms and technology group Ezentis, which is focused on Latin American markets, said on Monday its Chilean subsidiary had won a $100 million fibre optic contract from Telefonica.

Under the deal, Ezentis will develop and maintain copper and fiber optical fixed telephone lines as well as handle Telefonica Chile's customer service for telecoms, broadband and pay television, the firm said in a note to the Spanish stock exchange regulator.

Ezentis operates in several Latin American countries, including Chile and Panama and has won contracts in Peru and Argentina. Last year, the group had to refinance its debt to help to turn its business around.

(Reporting By Sarah Morris. Editing by Jane Merriman)

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às 11:24

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Telefonica set to sell $3.6 billion Czech stake: sources

A man walks past Telefonica's building in central Madrid March 26, 2013.

Credit: Reuters/Juan Medina

By Clare Kane, Sophie Sassard and Anjuli Davies

Mon Oct 14, 2013 1:25pm EDT

MADRID/LONDON (Reuters) - Spanish telecoms group Telefonica has started preparing the sale of its $3.6 billion stake in its listed Czech unit, three sector bankers closely following the process but not directly involved said on Monday.

Telefonica, which aims to cut its debt to under 47 billion euros ($64 billion) by the end of the year, has sold a number of assets to pay down borrowings, including its Irish business O2.

Analysts have long tipped Telefonica Czech Republic as an asset the group might shed. Telefonica reported net debt of 49.8 billion euros in mid-year results.

Two of the sources said Czech investment group PPF, owned by the country's richest man Petr Kellner, was the most likely buyer.

PPF recently sold its telecoms arm, which will compete as Revolution Mobile under new ownership, but seems keen to get back into the sector. It considered joining a 4G spectrum auction now underway in the Czech Republic as a new entrant but did not, and so buying Telefonica's business would be an alternative way into the market.

One of the two sources said a private equity fund could snap up Telefonica Czech Republic if PPF does not, adding that while he thought Russian telecoms groups would be interested in the asset, they could face political opposition.

A spokesman for Telefonica in Madrid declined to comment.

Bloomberg reported earlier on Monday that Goldman Sachs and Societe Generale were helping Telefonica find a buyer for the stake, though sources consulted by Reuters were unable to confirm which banks had been mandated.

Societe Generale and Goldman Sachs declined to comment.

Telefonica currently holds 69.41 percent of the Czech company, which has a market value of $5.2 billion, according to Thomson Reuters data. Telefonica Czech Republic's share price rose 6.4 percent to 322.50 Czech crowns on Monday.

The company faces long-term pressure on margins due to growing competition in the Czech telecoms market, where it faces rivals T-Mobile and Vodafone as well as so-called virtual operators that rent network space.

The former fixed-line monopoly is fighting back by trying to grow its data business over its fixed-line portfolio and by expanding its smaller business in Slovakia.

The business has a total client base of 9.3 million in the Czech Republic and Slovakia and reported a 7 percent decline in half-year revenues to 930 million euros.

(Additional reporting by Robert Hetz in Madrid and Jan Lopatka in Prague; Editing by Mark Potter)

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às 01:07

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