When Madrid based Telefonica
), which is held by Charles Brandes
and Mario Gabelli
, decided to take control of Telco, the company which exercises de facto control over Telecom Italia
) with its 22.4% stake, it was clear that the over leveraged Italian company would have to do something about its Latin American assets.
Last month, the former Italian monopoly decided to sell its stake in Telecom Argentina
) to the Mexican investor David Martinez
for just about $1 billion. Now, the Brazilian antitrust regulator is telling Telefonica to either reduce its investment in Telecom Italia, which controls TIM Brazil, or sell a stake in its Brazilian business, Vivo. The reason is clear. Vivo and TIM Brazil control over half of the country's mobile market. Most probably, the solution will come from Telecom Italia's side. I think the Milan-based company will finally decide to sell TIM Brazil in order to keep reducing its debt pile. That said, is selling TIM Brazil a good thing for Telecom Italia's shareholders? Continue Reading »