December 9, 2013 / 7:20 PM / in 4 years

Spain's Telefonica says has made no decision on TIM Brasil

MADRID, Dec 9 (Reuters) - 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 Vivo.

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 group, Telco.

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.

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