Telecom Italia says cleared to take control of Telecom Argentina-- 14/10/2010

Telecom Italia said on Thursday it has been cleared by regulators in Argentina to raise to 58% its interest in Sofora Telecomunicaciones, the entity controlling Telecom Argentina, from the previous 50%, and thus take control of the Argentinian telecom. The regulators allowed Telecom Italia to take an additional 8% in Telecom Argentina from the Werthein family, owning the other 50% in Telecom Argentina, in a deal involving no cash payment. Telecom Italia said the transaction will allow "line by line" consolidation of Sofora/Telecom Argentina results as of the fourth quarter of 2010, and it will have a one-time effect on the Italian telecom's results for the last quarter of this year. The agreement signed on Wednesday gives Telecom Italia the right to appoint the president and the chief executive at Telecom Argentina, while allowing the Wertheins to keep an eye on the accords concerning Telecom Argentina through an independent compliance committee set up for the purpose, the Italian company said. Telecom Argentina, one of the top telecoms in the country, served some 15.3m mobile clients, 4.1m wireline customers and around 1.3m broadband clients as of 30 June 2010. Telecom Argentina had revenues of some EUR1.3bn (USD1.83bn) and EBITDA of some EUR400m in the first half of 2010, Telecom Italia said.