Telecom Italia would be open to selling its stake in its Brazilian unit, TIM Brasil, but only if it received a very good offer Reuters reported.
Citing a source, the news agency stated Telecom Italia’s Brazilian business was integral to the operator’s long-term plans, but offloading the unit was also an option to reduce the group’s large debt.
Telcom Italia CEO Luigi Gubitosi reportedly made the admission to investors this week in Paris, when he also stated that reducing the company’s stake in masts unit INWIT was also a possible option.
News of a potential sale in Brazil comes at a time of consolidation in the market.
Earlier this week, America Movil struck a deal to acquire Nextel Brazil from NII Holdings and AI Brazil Holdings for $905 million.
It was rumoured in the past that Telecom Italia was interested in a possible deal for Nextel to boost its presence in the market, and its board even approved a non-binding offer for the operator. It is unclear if a bid was put forward.
The company’s longer-term strategy will likely become clearer next week, when Telecom Italia shareholders will vote on the make-up of its board of directors, as stakeholders Vivendi and Elliott Management wrestle for control.Subscribe to our daily newsletter Back