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Brazil: Telefonica, Telecom Italia feud rages on

 |  June 2, 2014

Spain-based Telefonica and Italy-based Telecom Italia continue to debate about the future of TIM Brasil, according to reports.

With Telefonica as the largest Telecom Italia shareholder, and Telcom Italia as the majority owner of TIM, the two European telcos are at odds over whether TIM should be merged or broken up and divested among other Brazilian competitors.

Telecom Italia is reportedly looking to merge TIM with Vivendi’s Brazil operations GVT.

But Telefonica and Oi are reportedly looking to break up TIM and spread the assets amongst the other Brazilian wireless players.

Unnamed sources told reporters that Telefonica is looking to break up TIM as early as this year.

The dispute between Telefonica and Telecom Italia has only intensified in recent months as Telefonica looks to break up the investment vehicle through which it owns 22.4 percent of Telecom Italia. Telefonica operates Brazil’s largest wireless operator Vivo, leading some antitrust experts to scrutinize Telefonica’s presence in Brazil through both Vivo and, indirectly, TIM.

Full content: Bloomberg

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