MILAN, Aug 5 (Reuters) - Shares in Telecom Italia were suspended from trading after a 4.97 percent drop on Tuesday as traders said an offer by Spain’s Telefonica for Brazil’s GVT hurt prospects for the Italian telecoms group.
Telefonica, the biggest investor in Telecom Italia with a 14.8 stake as a long-standing shareholder pact is being dismantled, said earlier on Tuesday it had presented an offer to Vivendi for its Brazilian Internet provider GVT.
Under the proposal, which expires on Sept. 3, Telefonica would be prepared to offer the French group the chance to acquire an 8.3 percent stake in Telecom Italia.
“This poses a question mark on Telefonica’s percent stake in Telecom Italia,” a Milan-based trader said. “Telecom Italia’s Brazilian assets have now lost their appeal for Telefonica.”
Another broker said Telefonica was definitely reconsidering its investment in Telecom Italia.
Reporting by Valentina Za and Massimo Gaia