Argentina's Telecom Regulator Denies Telecom Italia's Deal To Sell Sofora

(RTTNews) - Telecom Italia's ([TIAOF.PK, TI) deal to sell its Sofora Telecomunicaciones business under Telecom Argentina to Fintech Telecom LLC was blocked on Friday by Argentia's telecom regulator saying that Fintech lacks experience and expertise.

The deal was originally signed in November 2013 for $960 million, with an expected closing in April 2017. Fintech, an investment vehicle financed by David Martinez, a Mexican businessman, was planning to acquire 68 percent of Sofora.

The regulatory board noted that Fintech was incorporated in the Delaware on October 18, 2013, less than a month before Telecom Italia accepted the offer. In its decision, the Board said if the deal is approved the control of licenses of Telecom Argentina will be in the hands of investment companies.