In a strongly-worded statement, Telecom Italia rebuffed recent speculation that it is poised to sell its Brazilian unit as part of its efforts to pay down debt.

The Italian operator reaffirmed the strategic importance of its shareholding in Tim Brasil, denying “any ongoing contacts with potential buyers of the subsidiary, that a sale or combination with other operators are being pursued or that purchase offers have been received, not even unsolicited”.

In even firmer language, the statement said: “Telecom Italia wishes to make clear that the rumours of presumed plans for the deconsolidation and/or total or partial valuation of the Brazilian asset, described and repeated by journalists, pundits and analysts are inferences wholly without foundation.”

There has been ongoing speculation that Telecom Italia wants to dispose of the Brazilian unit as it seeks to raise up to €4 billion.

Debt reduction moves have followed a deal in September for Telefonica to increase its influence over the Italian operator. Both operators are also players in the Brazilian market.

Telecom Italia’s latest statement said it and Telefonica continue to be competitors in compliance with local rules in Brazil.

This is not the first time that Telecom Italia has denied speculation regarding its Brazilian unit but it now appears intent to finally end any talk in that direction.

Telefonica is thought to favour a sale of the Italian operator’s Brazilian unit, according to Bloomberg.

Telecom Italia’s statement was a response to a query from financial regulator Consob which also related to the sale of its stake in Telecom Argentina and a convertible bond issue.

While its Brazilian unit may not be up for sale, the Italian operator is publicly pursuing the sale and leaseback of its towers business in the country. Its domestic towers business is likewise available.  Other debt-repayment measures include the sale of its Argentinian arm.