Telecom Italia’s CEO, Marco Patuano, has warned that his company may be forced to reconsider its proposed sale of Telecom Argentina to US-backed investment fund Fintech if the government in Buenos Aires took too long to clear the deal. Speaking at the Ambrosetti forum in Cernobbio, Patuano said the ongoing financial crisis in Argentina had led to unavoidable delays but that Telecom Italia would have to review its options if the government kept putting off its approval. “The sale was supposed to be completed in the summer when the country went through a major crisis and it's normal that it wasn't the main focus of attention for the authorities,” he said. “But we can't put it off indefinitely and in that case would reconsider,” he said, without giving details. Telecom Italia has twice extended the deadline to close its USD 960 million sale of Telecom Argentina while awaiting regulatory approval from the country’s telecoms ministry SeCom. The deadline, originally 12 August, has now been put back until 25 September, coinciding with a Telecom Italia board meeting.
Patuano added that other options to cut Telecom Italia’s EUR 32 billion debt, such as the sale of its Brazilian mobile unit TIM Brasil, weren’t yet on the cards. “My answer hasn't changed,” he said. “TIM Brasil is a core asset but we are open to all options.” Patuano also rejected the possibility that the incumbent operator could be considering plans to spin off its domestic fixed-line network. “The strategy isn't changing, we do not intend to separate the network,” he said.
