Brazilian Flirtation Pushes Telecom Behemoths Telefónica and Telecom Italia Toward Divorce

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When Telefónica became Telecom Italia’s biggest shareholder in 2007, it was meant to be the beginning of a beautiful friendship between southern Europe's two telecom behemoths. Instead, the relationship has crumbled over the last couple of years over a raft of issues -- most importantly the companies' strategies in Brazil, where they are both fierce competitors and fervently need to grow to offset dire markets at home. Now those tensions have exploded into the open, creating a paradoxical situation whereby Telecom Italia is locked in a bidding war with its biggest shareholder to gain a bigger foothold in Brazil.


Brazilian Flirtation Pushes Telecom Behemoths Telefónica and Telecom Italia Toward Divorce