Amwal Al Ghad English - 2013-10-10 07:44:43
Telecom Italia SpA (TIT), the phone company that was stripped of its investment-grade rating, is seeking at least 9 billion euros ($12 billion) for its controlling stake in Brazilian mobile carrier Tim Participacoes SA (TIMP3), according to a person with direct knowledge of the matter.
A disposal of Telecom Italia’s 67 percent holding at that price would value Tim at about $18 billion, a 50 percent premium to the Rio de Janeiro-based company’s market value based on Oct. 8 closing price. The stake could fetch as much as 10 billion euros, said the person, asking not to be identified because the deliberations are confidential.Tim rose to a 1 1/2 year high in Sao Paulo yesterday, and Telecom Italia added 6.2 percent in Milan. Moody’s Investors Service cut Telecom Italia’s rating to junk this week, saying a further downgrade is possible unless the Milan-based carrier strengthens its balance sheet. The resignation earlier this month of Chief Executive Officer Franco Bernabe, who opposed a sale of Latin American assets to pare $39 billion in net debt, removed an obstacle to a change of ownership in Brazil’s second-largest wireless carrier. Telefonica SA (TEF), Telecom Italia’s biggest shareholder, is in favor of a disposal, people familiar with the matter have said. More»