Telefonica waives rights in Telecom Italia eyeing Brazil

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(Reuters) – Telefonica (TEF.MC) has formally waived the voting rights associated its stake Telecom Italia (TLIT.MI) order comply the demands of Brazil’ telecoms watchdog Anatel and go ahead a purchase of Vivendi’ GVT (VIV.PA), the Spanish group said Friday.

Earlier this month Brazil’ antitrust regulator said it had reached a preliminary with Telefonica and the local broadband unit of Vivendi that could clear the way for merger.

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Telefonica has an around 14.8 percent stake Telecom Italia, and has said it the stake partly fund the purchase after relations soured between the over consolidation in Brazil last year. The competition clash arises due Telecom Italia’ Brazilian units TIM and Intelig.

Having lost out to Telefonica in bidding for GVT last year, Telecom Italia had been looking at the possibility of instead buying Oi (OIBR3.SA) although that option appears now to have faded.

The Spanish telecoms giant has lined up nine to run its 3 euro ($3.2 ) capital increase in connection with its Brazilian purchase, a source familiar with the matter said Thursday.