Featured Articles

LG G Watch R ships in two weeks

LG G Watch R ships in two weeks

The LG G Watch R, the first Android Wear watch with a truly round face, is coming soon and judging by…

More...
LG unveils NUCLUN big.LITTLE SoC

LG unveils NUCLUN big.LITTLE SoC

LG has officially announced its first smartphone SoC, the NUCLUN, formerly known as the Odin.

More...
Microsoft moves 2.4 million Xbox Ones

Microsoft moves 2.4 million Xbox Ones

Microsoft has announced that it move 2.4 million consoles in fiscal year 2015 Q1. The announcement came with the latest financial…

More...
Gainward GTX 970 Phantom previewed

Gainward GTX 970 Phantom previewed

Nvidia has released two new graphics cards based on its latest Maxwell GPU architecture. The Geforce GTX 970 and Geforce GTX…

More...
EVGA GTX 970 SC ACX 2.0 reviewed

EVGA GTX 970 SC ACX 2.0 reviewed

Nvidia has released two new graphics cards based on its latest Maxwell GPU architecture. The Geforce GTX 970 and Geforce GTX…

More...
Frontpage Slideshow | Copyright © 2006-2010 orks, a business unit of Nuevvo Webware Ltd.
Friday, 08 November 2013 12:33

Telecom Italia sells Argentinian arm

Written by Nick Farrell



Wants to raise $5.3 billion

Telecom Italia will sell its Argentina unit while issuing a convertible bond, aiming to raise around 4 billion euros) to stave off a credit rating downgrade and strengthen operations in Italy and Brazil.

New CEO Marco Patuano, said it had received an unsolicited offer for its 22.7 percent stake in Telecom Argentina and planned to sell. It looks like the buyer will be investment fund Fintech, which already holds shares in Telecom Italia's Argentine unit. Telecom Italia also plans to sell and lease back more than 17,000 mobile towers it owns in Italy and Brazil, and unload an Italian digital broadcasting unit, aiming to reap more than 2 billion euros from these deals.

All this is supposed to represent a major change for the debt-laden former Italian telecom monopoly and show the influence that its largest shareholder, Spain's Telefonica, is having after it agreed to raise its ownership of the holding company that owns 22.4 percent of Telecom Italia.

TI is saddled with debt and needs to pour cash into its aging infrastructure to bring about a better internet world in Italy.

The asset sales could help stave off further credit downgrades. Moody's already cut Telecom Italia's rating to junk last month, while Fitch and Standard and Poors have it one notch above. Further downgrades will be costly because the company has to roll over large amounts of debt next year.

Nick Farrell

E-mail: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
blog comments powered by Disqus

 

Facebook activity

Latest Commented Articles

Recent Comments