Telecom Italia Should Buy Out TIM: CVM

Brazil’s securities commission, CVM, has notified TIM Participacoes that Telco, which owns 24.5% of Telecom Italia, “has the legal duty” to launch a public tender offer for the shares it does not own in TIM, based on the stock purchase agreement. CVM’s notice places no direct obligation on Telecom Italia, the Italian company says. Telecom Italia owns almost 80% of TIM. According to Reuters, the move could cost shareholders more than $1bn. Telco, which has the right to appeal, considers the ruling “ungrounded,” it says in a statement cited by Reuters.