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Brazil says Telefonica-Telecom plans bad for competition

'Either TI sells TIM in Brazil, or Telfonica leaves TI stake'

05 December, 11:01
Brazil says Telefonica-Telecom plans bad for competition (ANSA) - Rome, December 5 - Brazil's antitrust agency has damaged plans by Spanish telecommunications company Telefonica SA to take a larger stake in Italian rival Telecom Italia, arguing it would be bad for consumers in the country's cellular market. "Either Telecom Italia sells TIM in Brazil, or Telefonica must leave its stake in Telecom Italia," CADE President Vinicius Marques de Carvalho said in a statement, according to the Wall Street Journal. Telecom Italia has a stake of nearly 67% in TIM Participacoes.

Brazilian authorities are worried about weakening competition in the local market after TIM Participacoes's biggest Brazilian competitor, Spain's Telefonica group, moved to increase its shares in Telecom Italia earlier this year. Telecom Italia has not ruled out a sale, though it has reportedly called its majority stake in TIM Participacoes a strategic asset.