On the Board of Telecom Italy of January 16 there will be no conditions to sell Tim Brazil. He writes it Mark Fossati, president of Findim (shareholder with 5% of the telecommunications company), in a letter sent to the board of the group led by Marco Patuano together with a study that assigns Tim Brasil a valuation of up to 28-30 billion.
“On the occasion of the next Board of Directors meeting – reads the text – we send you, for your information and in the hope that it will provide added value to your analyses, one of our studies concerning the valuation of the investee Tim Brasil. Furthermore, we would like to take this opportunity to point out that – considering the assessments repeatedly publicly reaffirmed by CEO Patuano in relation to the strategic interest of the presence of our company, through its subsidiary Tim Brasil, on the Brazilian market – it will be very difficult to recognize the conditions for adopting a resolution to sell the equity investment in the aforementioned subsidiary".
This is because "only a price much higher than the current market value of Tim Brasil can effectively compensate adequately for the loss of chance inherent in a strategic stake - continues the letter -, not only capable of significantly contributing to the economic results of the our company with substantial growth prospects for the future, but which ensures the Telecom group a leading role in the international telecommunications market. Therefore, in evaluating any purchase proposals, the Board of Directors must, in the opinion of the writer, operate with great prudence and taking into account not only the economic and equity effects of the disposal, but also the implications that the loss of the Brazilian market entails for the future of Telecom Italia in the panorama of international telecommunications operators".
Findim also reiterates that, "should an offer for the sale of Tim Brasil be received, the resolution of the Board of Directors concerning the evaluation of this possible offer must, in the opinion of the writer, be voted exclusively by the members of the Board not of expression of related parties and/or the shareholder Telco. The unavoidable conflict of interest involving Telefonica, Telco's majority shareholder - concludes the letter - with particular regard to the decisions of our company in relation to the strategies relating to the Brazilian market, in fact requires the Board of Directors to weigh up its choices bearing in mind that all directors of expression of Telco must be considered bearers of an interest in conflict with that of Telecom".
By mid-morning, the Telecom Italia stock lost about half a percentage point.
