In order to avoid undergoing a credit rating downgrade and improve its operations in both Italy and Brazil, Telecom Italia would be selling its Argentina unit along with other assets. The company would also be issuing a convertible bond with the objective of raising EUR4 billion or USD5.3 billion.

The largest telecoms operator in Italy is implementing its strategic shift under newly appointed CEO Marco Patuano. The company confirmed the receipt of an unsolicited offer for 22.7% of its shareholdings in Telecom Argentina. The telecoms firm also indicated it had existing plans to sell off some of its assets.

According to news reports from Argentine dailies such as Clarin and La Nacion last Thursday had confirmed that the purchaser of the Argentine asset is Fintech, the investment fund. The fund manager already holds assets in Telecom Italia's Argentine unit.

The other assets Telecom Italia seeks to sell and lease would be the over 17,000 mobile towers it owns located in Italy and Brazil. Another asset would be the Italian digital broadcasting unit it owns as it aims to earn nearly EUR2 billion from the sale of these assets.