Brazilian antitrust officials have proposed to fine Telefonica SA for moves it made to tighten control over Telecom Italia SpA, arguing it violated a 2010 regulatory accord meant to separate the two companies' interests in Brazil. In a nonbinding report released this week, the technical staff of anti-monopoly watchdog Cade said Telefonica should immediately sell shares it acquired in Telco, the holding company that controls Telecom Italia.The report also urged a prohibition on all further purchases of Telco shares planned by Telefonica. Cade's solicitor general proposed a fine of 15 million reais ($6.5 million) and threatened a more severe intervention. The agency could rule on the penalties as soon as Wednesday.Harsh regulatory measures in Brazil could snag Telefonica's plan, set in motion in September, to gradually increase control over Telecom Italia through the holding company Telco.Telefonica had argued that by adding only to its nonvoting stake in Telco so far it had not affected control of Telecom Italia or violated agreements with Brazilian regulators. A Telefonica official failed to comment on Thursday.
Telefonica SA is a Spain-based company active in the telecommunications and digital services sectors. Shares of TEF fell by 0.36% or $-0.06/share to $16.40. In the past year, the shares have traded as low as $12.31 and as high as $18.05. On average, 1286200 shares of TEF exchange hands on a given day and today's volume is recorded at 699784.
Shares of TI traded higher by 0.33% or $0.03/share to $9.16. In the past year, the shares have traded as low as $6.20 and as high as $10.30. On average, 303985 shares of TI exchange hands on a given day and today's volume is recorded at 57197.
Shares of TI-A fell by 0.55% or $-0.04/share to $7.17. In the past year, the shares have traded as low as $4.86 and as high as $8.72. On average, 71975 shares of TI-A exchange hands on a given day and today's volume is recorded at 17212.
Source
