Convergencia Research, Consultoría especializada en Latinoamérica y Caribe
Friday, February 13, 2015

Alliances Map in Argentina 2014

The wave of mergers and acquisitions triggered most changes in this map for 2014

Alliances Map in Argentina 2014 - Credit: © 2014 Grupo Convergencia
Alliances Map in Argentina 2014 - Credit: © 2014 Grupo Convergencia

Fintech, Telecom Italia, Telefónica, Facebook, Whatsapp, Blackrok, Aurelius, AT&T, DirecTV, GVT, Vivendi, Motorola Mobility, Google, Lenovo changed this year´s edition, while delays in Clarín adequation suspended several modifications in locales companies.

Fintech´s operation moved the market and 2013 map with the announcement of the adquisición of Telecom Argentina. A year later, Telecom Italia decided to change condiciones in their contract: David Martínez fund buys 17% and the remaining 51% will not shut up

until the Secretaría de Comunicaciones pronounces. This situation keeps the Italian at the leading of Telecom Argentina, which stay could last two years and a half, according to the new agreement. People in charge of analyzing the operation in Argentina similarly argue that this delay to decide is proportional to the complexity of these societies and the permanent movement of shareholders, as reflected in Map 2014.

Therefore, 40% by Cablevision, which promised Fintech sell for driving the telephone company, was waiting. In contrast, several compositions were triggered landslides in Europe. The Board of Directors of Telco, principal shareholder of Telecom Italia, approved in July the breakdown of society at the request of one of its members, Assicurazioni Generali. The process will include the creation of four new partnerships, each partner.

In this way  Telefónica would stay as the main shareholder of the Italian operator but keep the decision not to participate in the Board of Directors to avoid problems with regulatory authorities in the countries where Telefonica and Telecom Italia compete. This domain may not endure over time, since Telefónica will pay part of the Brazilian GVT to Vivendi with 1,110 million ordinary shares of participation that the Spanish operator Telecom Italia owns 8.3% of the capital with voting rights of the Italian company and 5.7% of its share capital. César Alierta, CEO of Telefónica, expressed on several occasions his intention to leave Telecom Italia.

During 2014, Argentina experienced the most significant conflict with vulture funds after failure of US judge Tomas Griesa in favor of the holdouts. So in this issue shows that one of these, Blackrock, actively involved in telecommunications: America Movil (4.4%), Telefónica (3.89%) and Telecom Italia (4.9%). In addition Aurelius, fund Mark Brodsky, is one of the

major shareholders of NII Holdings, the parent of Nextel. Although in neither case is predominant or decisions regarding local operations reflects the pervasiveness of these investors.

On the other hand, AT & T strengthens its presence in the region. He bought Directv US $ 48,500 million mid-year acquisition remains pending approval. The US operator will add more than two million customers Direct to Home Television and 23,000 Internet Argentina.

To avoid conflicts with regulatory agencies in the region, AT & T sold its stake in America Movil (8%), which bought back the same holding of Carlos Slim for $ 5.565 million. Another of the most resonant acquisitions in recent times, and that impacts many of the mobile phone users, is to Whataspp by Facebook, for US $ 19,000 million, which extended up to US $ 22,000 million after approval regulatory authorities due to the rise of the action of the social network.

The new map also reflects total Metrotel acquisition by Sociedad Comercial del Plata and Lenovo bought Motorola Mobility to Google. Locally, earlier this year, Grupo Clarín proposed divided into six units, to suit the media law. The first two would be distributed among the shareholders of the holding company, while the rest would follow.

It  began its break with some sales agreements, but everything stopped when the Afsca found irregularities and declared the start of the adequacy of office. The decision fell in the judicial swamp, so that, five years sanctioned Law on Audiovisual Communication Services, a media company remains intact.

Nextel, the only operator who was not involved in the 4G spectrum auction and remains without 3G continues for sale. The Twenty Group, which was by absorbing it reached only to acquire Chilean subsidiary, before NII Holdings submit the request for bankruptcy in the United States and curb the negotiations. At press time the Afsca defined adaptation plans of Grupo Prisa and Telefonica-Telefe, forcing the station to part with their channels 9 and 7 Bahia Blanca Neuquén.

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