Telecom Italia SpA, Italy’s biggest phone company, forecast declining earnings for this year and said it plans to cut its dividend after reporting 2012 profit that trailed analysts’ estimates. The stock fell.
Telecom Italia SpA Chief Executive Officer Franco Bernabe , who presided over a 19.7 billion-euro ($27.3 billion) loss of market value, has boosted his chances of a second term by cutting debt and promising higher dividends.
A disposal of Verizon Communications Inc.’s fixed-line operations would clear the way for the company to merge its wireless and enterprise units with partner Vodafone Group Plc, analysts at Goldman Sachs Group Inc. said.
Portugal Telecom SGPS SA agreed to buy a stake in Telemar Norte Leste SA to remain in the Brazilian telecommunications market as it sells its shares in the country’s biggest mobile-phone operator to Telefonica SA.