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Telefonica to exit Telecom Italia after GVT deal - chairman

2014-09-02 08:56:00| Telecompaper Headlines

(Telecompaper) Telefonica is set to exit Telecom Italia after it has finalised the acquisition of Vivendi's Brazilian broadband operator GVT, with a view to circumventing competition concerns in Brazil. "After the GVT operation the message is clear, we don't want to stay in Telecom Italia," commented Telefonica chairman Cesar Alierta at the XXVIII telecommunications and digital economy meeting held at Universidad Internacional Menendez Pelayo (UIMP) in Santander. Telefonica has been the dominant partner in the Telco SpA investor group that has controlled Telecom Italia for the past 7 years but the imminent break up of the holding has prompted questions about Telefonica's plans for the rest of its stake in Telecom Italia. It will still hold 8.3 percent of voting rights in the Italian operator once it completes a transaction announced in July to convert EUR 750 million of bonds exchangeable into Telecom Italia shares. Telefonica offered its Telecom Italia shares to Vivendi as part of its bid for GVT and last week confirmed that it expects the purchase to close in mid-2015.

Tags: deal italia exit chairman

Category:Telecommunications

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