by telecommunications regulator AFTIC to block its acquisition of a 49 percent stake in Nextel Argentina, reports local daily El Cronista. AFTIC had previously deemed the transaction illegal on the grounds that Clarin failed to seek the required approvals, in a decision that was widely seen as politically motivated in view of the longstanding dispute between the media group and outgoing president Cristina Fernandez de Kirchner. However, Federal Contentious-Administrative Court No. 9 has now imposed a six-month injunction on AFTIC’s decision, ruling that the regulator failed to carry out “a thorough assessment of the arguments put forward by the appellants in support of their position.” The case will now be reviewed next year, with Clarin retaining an option to purchase the remaining 51 percent of NII Holdings’ stake in Nextel Argentina in addition to the initial 49 percent.
Nextel is currently Argentina’s fourth largest mobile operator with a 3 percent share of the market, well behind Claro (America Movil) with 33 percent, Personal (Telecom Argentina) with 32 percent and Movistar (Telefonica), also with 32 percent.
