Telecom Italia, the largest telecommunications company in Italy, on Monday said that it gave marching orders to its management to conclude a sale of its stake in Buenos Aires-based Telecom Argentina.
In a statement released to Reuters, the Italian telecommunications company said that it was negotiating a majority stake in Telecom Argentina to investment firm Fintech.
Telecom Italia was batting to raise EUR4 billion (USD5.36 billion) from the exit. The deal was part of the Italian company's moves to avoid a credit downgrade and revive its business, said the report.
Last week, the telecommunications company reportedly received a USD1 billion offer for its stake in one of Argentina's major local telephone companies.
Meanwhile, small investors association ASATI criticized the deal saying it would harm minorrity shareholers to the benefit of core investor Telefonica.
Telefonica is a multinational broadband and telecommunications provider operating in North and Latin America, Europe and Asia. It has agreed to gradually takeover its Italian competitor starting next year, Reuters said.
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