ROME, April 28 (Reuters) - Telecom Italia’s new Chief Executive Officer Flavio Cattaneo said on Thursday there are problems with the company’s Brazilian business, adding he did not rule out management changes there, union leaders said after meeting him.
In his first meeting with the largest labour unions, Cattaneo said he planned no job cuts, and he confirmed previous investment plans in the network and fibre optics, general secretary of the Uilt union, Salvo Ugliarolo, said.
Cattaneo said the return on investments at Brazilian mobile subsidiary TIM Participacoes were not what had been hoped for and he was looking into the unit’s situation, Ugliarolo said.
“He told us that he has no intention of making shocking changes, by downsizing the company or reducing the labour force, and he confirmed planned investments in the network and fibre optics,” Ugliarolo said.
Telecom Italia is in talks with the main shareholders of fibre optic company Metroweb, and Cattaneo said that Telecom Italia would purchase the company at market prices, Ugliarolo said. (Reporting by Alberto Sisto, writing by Steve Scherer)