Telefonica has joined with a group of Italian investors (Assicurazioni Generali, Intesa Sanpaolo, Mediobanca and the Benetton family) to pay 4.1 billion euros (US$5.6 billion) for an 18 percent stake in Telecom Italia (or specifically Olimpia, the investment vehicle that controls the board of Milan-based Telecom Italia), reports Bloomberg. Of course, a big prize is TIM, Telecom Italia’s subsidiary in Brazil.
The investor group will form a new company called Telco, with Telefonica investing 2.3 billion euros to own the largest stake at 42 percent, and Telco will directly hold an additional 5.6 percent of Telecom Italia provided by Generali and Mediobanca, so that the investor group’s joint holding will total 23.6 percent. The agreement between the investors ensures that Italians will continue to control Telecom Italia — something that sooths political waters. AT&T had made a bid in conjunction with America Movil, but called it off after facing opposition from the Italian government.
The Brazilian subsidiary TIM now has 25.8 percent of the Brazilian market, close behind front-runner Vivo on 28.4 percent and just above Claro on 24.1 percent.
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