Telecom Italia denies plans to sell Brazilian subsidiary
TIM Brasil 'strategic asset' says telecom company03 January, 13:39
The company said it was "not aware of any offer for Tim Brasil and reiterates once again the strategic importance of its Brazilian asset".
The clarification came after Telecom shares soared 7% in early trading on the Milan stock exchange amid fresh reports of a possible take-over of TIM Brasil - also known as TIM Participacoes - by the Spanish telecoms group Telefonica.
Telefonica already has an interest in the company via its 15% stake in Telecom Italia.
Company shares dropped to 4.5% on the Milan bourse following the announcement. TIM Brasil is the South American country's second biggest mobile telecommunications provider and is controlled by Telecom Italia with a stake of nearly 67%.