Argentina freezes stakes in telecoms antitrust case
BUENOS AIRES, Jan 5 (Reuters) - Argentina's antitrust commission ordered Telecom Italia not to change its participation in Telecom Argentina due to concerns over Telefonica's indirect stake in the Italian company.
The commission's resolution, sent by Telecom Argentina to the Buenos Aires stock exchange on Monday, said Telecom Italia "should abstain" from exercising its option to buy, cede or transfer its shares in Telecom Argentina until the government agency makes a final ruling on the case.
As part of a consortium, Spain's Telefonica (TEF.MC) bought an indirect 10 percent stake in Telecom Italia (TLIT.MI) in 2007. The companies operate Argentina's two biggest telephone companies: Telefonica de Argentina (TEF.BA) (TEA2.BA) and Telecom Argentina (TEC2.BA) (TEO.N).
Citing monopoly concerns in the local telecommunications market, the government moved to deter Telefonica from trying to boost its participation in Telecom Argentina.
"The deal being studied would result, prima facie, in economic consolidation and could affect the general economic interest," the antitrust commission said.
The Argentine firm is indirectly controlled by Telecom Italia and Argentina's Werthein family, through a company called Sofora Telecomunicaciones S.A.
Telecom Italia has an option to buy the Wertheins' stake in Sofora, but the commission's decision temporarily bars such a move.
During a visit to Buenos Aires in May 2008, the president of Telecom Italia, Gabriele Galateri di Genola, said Telefonica exerted no influence on his company's operations in Argentina or anywhere else, adding that Telefonica's indirect stake "will not have any impact on the Argentine market." (Reporting by Lucas Bergman; Writing by Hilary Burke)
