Telefonica SA must determine how to reduce its presence in Brazil to comply with an antitrust ruling, which said its move to boost its influence over Telecom Italia SpA undermines competition in the South American country’s telecommunications market.
Telefonica SA must reduce its influence in Brazil’s phone business, the country’s antitrust regulator said, either by reducing its holdings or by persuading partner Telecom Italia SpA to sell its local unit.
Tim Participacoes SA, the Brazilian telecommunications carrier providing the best return this year, can thrive on its own and fight growing pressure to sell the company, said Chief Executive Officer Rodrigo Abreu.
America Movil SAB withdrew its 7.2 billion-euro ($9.7 billion) offer for shares of Royal KPN NV after talks broke down with the Dutch phone carrier, striking a blow to billionaire Carlos Slim’s European strategy.
America Movil SAB bondholders who applauded the Mexican phone company’s decision to abort a takeover in Europe are welcoming the alternative: investing in Brazil, its second-biggest market, and paying down debt.
John Malone and Carlos Slim’s plans to expand their empires on the cheap in Europe’s beleaguered telecommunications market have been thwarted so far as companies in the region begin commanding higher prices.
As Vodafone Group Plc nears an exit from its 14-year-old U.S. wireless venture with Verizon Communications Inc., Europe’s biggest mobile-phone company may have to make a tough choice: buy or be bought.