Argentine telecom regulator Aftic has rejected the bid by Fintech Group -- led by Mexican financier David Martinez -- to buy a controlling stake in Telecom Argentina (TEO -0.2%) from Telecom Italia (TI +3.5%).
Aftic unanimously rejected the Fintech proposal on grounds that it couldn't guarantee normal functioning of a telecommunications company.
Martinez had proposed taking a 68% stake in Sofora Telecomunicaciones, the indirect controller of Telecom Argentina. But regulators noted he had incorporated Fintech in Delaware less than a month before TI accepted his bid.
After coming to agreement with Fintech -- effectively acquiring TI's 22.7% indirect stake in Telecom Argentina for $960M -- TI agreed to give Martinez 30 months to complete the deal, but he continued to fail at the regulatory level.
via seekingalpha.com
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