TI’s Etecsa Stake Reported for Sale

Telecom Italia (TI) is rumored to be selling a 27% stake in Cuba’s telecommunications company, Etecsa, to the Cuban government, according to Italian newspaper Il Sole 24 Ore. TI declines to comment on the rumors, though a Caribbean analyst who asks not to be identified says such a move would be inconsistent with Cuba’s recently announced austerity measures. Mexico-based UBS equities analyst Tomas Lajous says America Movil and Spain’s Telefonica would be natural buyers for the stake, as Mexican and Spanish companies are widely invested in Cuba. TI has stated publicly it would consider a sale of the stake.