The Brazilian government will decide on the future of Tim Participações only after the dispute over Telefonica's share in Telecom Italia has been resolved. "The truth is that we will not decide anything until the issue is discussed and decided in Italy," said Communications Minister Paulo Bernardo.
The Telecom Italia assembly convened by Marco Fossati meets on Friday, in dispute with Telefonica which, says Fossati, does not act in the interests of the Italian group. Shareholders will vote on the proposed dismissal of the board. Bernardo did not rule out a split by Tim Participações, but added: “First we need to know how it would be done. But if Telefonica is not allowed to make any decisions about Tim, how is it authorized to discuss a possible division?”.
The new CEO of Telecom Italia, Marco Patuano, has said on several occasions that Tim Participações is a strategic asset and is not for sale, stating however that the group could consider particularly interesting offers. For several months, the market has been speculating on the division and sale of the Brazilian subsidiary to the country's three main operators, Oi, America Movil and Telefonica Brasil, which could pass under antitrust scrutiny.
