UPDATE 2-Telefonica to exit Telecom Italia after Brazil deal

lunes 1 de septiembre de 2014 11:11 GYT

* Telefonica offered Vivendi remaining Telecom Italia shares

* Exit follows Brazil regulatory concerns

* Could use treasury stock to finance GVT deal - chairman (Adds regulatory issues and shares)

By Andrés González

SANTANDER, Spain, Sept 1 (Reuters) - Telefonica plans to exit Telecom Italia once the Spanish group has finalised the purchase of Vivendi's Brazilian broadband business GVT, ending a long-standing shareholding and easing competition concerns in Brazil.

Tense relations between the Spanish and Italian companies came to a head last week when Telefonica beat Telecom Italia to buy GVT, a blow for the latter that could make it a takeover target in a fast-consolidating industry.

"After the GVT operation the message is clear, we don't want to stay in Telecom Italia," Telefonica Chairman Cesar Alierta told journalists after attending a telecoms conference in Santander, northern Spain.

Telecom Italia declined to comment.

Telefonica has taken steps in recent months to reduce its stake in Telecom Italia, which it owns through holding company Telco. It will hold 8.3 percent of voting rights in the company once it converts a three-year bond exchangeable into Telecom Italia shares.   Continuación...