News
Italian operator’s CEO says he is not under pressure to sell out of Brazil.
Telecom Italia has once again insisted that it does not intend to sell out of Brazil, while in its home market the Italian incumbent is working hard to broker a deal with fibre network operator Metroweb.
Speaking in an interview with Italian financial paper Il Sole 24 Ore, Telecom Italia CEO Marco Patuano said he is not being pushed to sell TIM Brasil and continues to see Brazil as an important market, despite its economic recession, Reuters reported at the weekend.
Telecom Italia’s continued presence in Brazil is widely believed to be a point of disagreement between the telco and its largest shareholder Vivendi, which, according to media reports last week, is starting to question Patuano’s leadership. Telecom Italia has played down talk of him being replaced though.
Russian investment group LetterOne (L1) Technology pledged to plough US$4 billion into Brazil’s Oi should it affect a merger with TIM Brasil, but late last month withdrew its offer, citing Telecom Italia’s refusal to take part in further negotiations.
"It was clear from the start there was no agreement on the respective roles in the combined entity," Reuters quoted Patuano as saying. The CEO intimated that Telecom Italia will only agree to a Brazilian deal that leaves it with control of the merged entity.
Vivendi has backed Telecom’s Italia’s new three-year strategic plan, which will see it spend 14 billion reais (€3.1 billion) in Brazil, mainly on the development of network infrastructure.
It will also invest €12 billion in Italy, including €3.6 billion on the expansion of its fibre infrastructure, with the goal of reaching 84% of the population.
Telecom Italia is aiming to reach agreement with F2i and Cassa Depositi e Prestiti’s Fondo Strategico Italiano arm, owners of fibre network provider Metroweb, in the next couple of weeks, Reuters reported on Friday, citing unnamed sources.
The firms plan to set up a new jointly-owned company that will invest in the roll out of high-speed broadband infrastructure.
All parties concerned discussed the issue on Friday, with Patuano in particular looking for a quick solution, one of the sources said.
