Bidder preparing USD 1.1 bln bid for Telecom Argentina stake

News General Argentina 29 FEB 2016
Bidder preparing USD 1.1 bln bid for Telecom Argentina stake

Argentine businessman Carlos Newbery is preparing to make a bid for Telecom Italia's stake in Telecom Argentina, reports Bloomberg, adding that Newbury is ready to offer 10 percent more than US-backed investment fund Fintech. "The valuation and potential of the company is higher than what has been offered and we are ready to improve it up to USD 1.1 billion," Newbery told Bloomberg. Although Telecom Italia reached a deal back in 2013 to sell its 68 percent controlling stake in Telecom Argentina holding company Sofora to Fintech for USD 960 million, it has so far only managed to divest an initial 17 percent share.

However, Argentina’s new telecommunications regulator Enacom is expected to approve Martinez’s offer at its next meeting, according to four unnamed sources cited in the report, after the now defunct regulator AFTIC blocked the transaction last October. In addition, Telecom Italia has announced separately that the terms of the agreement with Fintech stand until April 2017.

Categories:

General

Companies:

Telecom Italia,  Telecom Argentina

Countries:

Argentina,  Italy

Tags:

Regulations, M&A buyouts & divestments

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