MADRID Dec 9 Spanish group Telefonica
has not yet decided what to do about a Brazilian competition
ruling that it should withdraw from having an indirect interest
in Brazilian mobile company TIM Participacoes or seek
a new partner for its rival, Telefonica Brasil's
Last week Brazilian anti-trust agency Cade's board of
directors said Telefonica needed to find a new partner for the
Vivo business or arrange for the sale of its interest in TIM
Participacoes (TIM Brasil), which is derived from the 67 percent
stake owned by Telecom Italia.
The decision followed Telefonica's deal in September to
gradually take over Telecom Italia's own controlling shareholder
In addition to ordering the Spanish company to exit its
stake in TIM Participacoes, Cade imposed a 15 million reais
($6.3 million) fine on Telefonica for increasing its stake in
Telco, which owns 22.4 percent of Telecom Italia.
TIM Brasil was also fined 1 million reais by Cade, after the
wireless carrier hired a consultancy firm owned by Telefonica.
In a statement to the telecoms regulator in Spain on Monday,
Telefonica said it was still awaiting the confidential detail of
Cade's decision, including the deadline for when it must sell
its non-voting shares in Telco and when it must pay the fine.
"Given that Telefonica has not been officially notified and,
therefore, does not have the complete official information of
both Cade's decisions, it still cannot comment on the measures
and actions to take," the company said.