Telecom Italia investor questions possible TIM Brazil sale-slide

MILAN Thu Nov 7, 2013 5:38am EST

A Telecom Italia phone booth is pictured in front of St Peter's Basilica in Rome September 24, 2013. REUTERS/Alessandro Bianchi

A Telecom Italia phone booth is pictured in front of St Peter's Basilica in Rome September 24, 2013.

Credit: Reuters/Alessandro Bianchi

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MILAN (Reuters) - Telecom Italia (TLIT.MI) investor Marco Fossati believes the possible sale of the phone group's Brazilian unit TIM (TIMP3.SA) would diminish options for future growth, according to slides for an analyst presentation.

The Italian businessman, whose holding company owns 5 percent of Telecom Italia, flew to London on Wednesday to outline his plans for the heavily indebted company following his request last month to call a shareholder meeting to overhaul the group's board.

According to presentation slides seen by Reuters, Fossati said a potential forced sale of TIM for antitrust reasons and its potential split would result in "last-minute bidding" by suitors and poor valuation multiples.

He said the proceeds of a sale would not be enough to materially lower Telecom Italia's debt ratios.

Spain's Telefonica (TEF.MC), which is part of the Telco group controlling Telecom Italia, is eyeing a sale of TIM in 2014, several sources close to the matter said. <ID:L5N0IR3J8>

Telecom Italia's board meets on Thursday afternoon to approve a new three-year business plan.

(Reporting by Danilo Masoni)

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