Newspaper: Telecom Italia Not Selling TIM Brasil

Europe's fourth largest telecoms company Telecom Italia is not thinking of selling its mobile phone unit TIM Brasil, newspaper Folha de S Paulo reported Telecom Italia's global director of investor relations Giampaolo Zambeletti as saying.

"What I understand is we are not selling TIM Brasil. What we are prepared to sell, like everyone knows, is our share in Brasil Telecom," Folha reported Zambeletti as saying.

The statement by Zambeletti adds to the soap opera of media speculation in 2006 regarding Telecom Italia's supposed sale of its last assets in Latin America. Telecom Italia has not helped things by making comments to press that seem to contradict what was said previously.

Earlier this month, news agencies reported sources saying Telecom Italia's CEO Riccardo Ruggiero is against the sale of TIM Brasil and is reconsidering TIM Brasil's strategic importance. Shortly before that, Ruggiero had said they would have a buyer for TIM before the end of 2006.

So far, Mexico's América Móvil has been rumored to be the favorite to purchase what is Telecom Italia's last major asset in Latin America.

Mexican telecoms magnate Carlos Slim has said he is willing to pay US$10bn for TIM's mobile operations in Brazil and Argentina, Folha reported.

Brazil's largest fixed line operator Telemar (NYSE: TNE) is also studying the acquisition of TIM, Telemar CEO Luiz Falco recently said."

Posted to the site on 31st December 2006