Telecom Italia has confirmed that it has no plans to sell its Brazilian subsidiary, but in a statement yesterday, the company said that should a bid be put forward, “related party procedures” would be followed for review by a committee of independent board members.
TIM Brasil is Telecom Italia’s main source of growth in Latin America, and there were reports last week that Telefónica was planning to put forward a bid for the company, which have since been denied.
Thursday’s decision could mean that any sale of TIM Brasil would need approval at a special shareholders meeting, meaning Telefónica – Telecom Italia’s direct competitor in Brazil – would be left out of the vote if it was identified as a related party.
According to Reuters, the independent director’s reviews could protect Telecom Italia from any accusations of conflict of interest.
