Telecom Italia Confirms Authorization For Argentina Holdings Sale

(RTTNews) - The Board of Directors of Telecom Italia SpA (TIAOF.PK, TI) met Monday to further consider the sale process of the group's direct and indirect holdings in Telecom Argentina.

The Board, which met under the chairmanship of Aldo Minucci, confirmed its authorization for management to finalize the sale. The sale had been the subject of discussion at the meeting held on November 7.

Last week, the company had reported a sharp decline in third-quarter profit as revenues were hurt mainly by weak domestic market, despite growth in Brazil and Argentina.

The firm also approved its 2014-2016 strategic plan at that time, adding that its Board approved extraordinary transactions to strengthen its financial position to support the 2014-2016 three-year Industrial Plan.

These actions include issuing of mandatory convertible bonds for a maximum of 1.3 billion euros, the disposal of the stake in Telecom Argentina, the valuation of the towers in Italy and Brazil and of the TI Media multiplexes.

The company is reportedly in talks to sell a majority stake in Telecom Argentina to investment fund Fintech.

The stock closed up 1.8 percent on Monday in Milan at 0.69 euros.