What wants Telefonica really ?

This interesting article "Scenarios - Telefonica's options in Brazil" speaks about an offer refused by Portugal Telecom to buy out its stake in Vivo.

Actually Telefonica controls Telecom Italia by Telco, an italian company formed also by italian banks and assurances.

Due to this participation, Telecom Italia will sell his participation in Telecom Argentina for antitrust problem while Brazilian antitrust (In Brazil, Telefonica participates Vivo with Portugal Telecom and Tim Brazil with Telecom Italia) approve it.

Now, why Telefonica want acquire total control of Vivo ? Sure it knows that if it happens, sure Brazilian antitrust encountered a monopolistic situation in mobile market and Telecom Italia will be in trouble. So what game is playing Telefonica?

The article made the following assumptions for Telefonica:

1 - RAISE ITS BID FOR THE VIVO STAKE
2 - OFFER ANOTHER ASSET IN EXCHANGE FOR VIVO STAKE
3 - BUY PORTUGAL TELECOM OUTRIGHT
4 - PURSUE TIM BRASIL

After an analysis for me behind interest in VIVO really there is interest in eliminate TIM BRASIL from Brazilian Telecom Market or directly acquire total control of Telecom Italia.

The battle has just begun.

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