Telecom Italia is unlikely to return to Brasil Telecom (BrT), according to a senior government source. It?s entitled to reacquire a controlling stake in BrT?s equity once its achievement of regulatory targets has been approved. It will probably prefer to acquire Opportunity?s stake in Telemar, says the source. The Government is reported to be ?enchanted? with Telecom Italia and keen to cultivate a closer relationship with the group.
The same source gives scant credence to recent reports of an impending BrT-Telemar merger. For starters it would be opposed by Telemar?s major shareholders, says the source.
It remains to be seen whether Telecom Italia is interested in investing in fixed-line telephone companies at all, and whether a deal involving Telemar would include its wireless arm, Oi.