Pirelli’s Telecom Italia Sale Delayed

The sale of Pirelli’s loss-making share in Telecom Italia has been delayed by Brazil’s telecommunications regulator Anatel. The regulator’s review of the deal was postponed on August 30 in order for it to have more time to consider the acquisition in greater depth.

Anatel must approve the deal because Spain’s Telefonica, one of the investors in Telco, the holding company that has agreed to acquire control of Telecom Italia, also operates mobile phone services competing against Telecom Italia in Brazil. Representatives at Telefonica state they do not see any potential problems arising with Anatel.

The Spanish phone company is one of several investors that agreed to purchase Olimpia in April for more than four billion euros plus debt. However the investors must wait until Anatel grants approval before closing the deal.