Telecom Italia (TI) said on Tuesday that it will transfer its 38 per cent stake in Solpart – one of the holding companies that control Brasil Telecom – to another company with a view to selling the stake. The Italian firm has requested approval for transfer of the 38 per cent stake from the Brazillian regulator Anatel.

Late Monday evening, TI officials moved to settle concerns about the deal by announcing that the transfer would resolve any issues concerning mobile and long-distance overlaps between its mobile unit TIM, and Brasil Telecom

TI said in a statement that the stake will be transferred to Brasilco Srl which will in turn be controlled by a trust operating under British law and managed by Credit Suisse. According to TI, the sale of the Solpart stake will be handled by JP Morgan.

The apparent rush to sell off TI’s stake is designed to avoid sanctions from Brazilian authorities due to the potential overlap of mobile and long distance licences held by its subsidiaries Brasil Telecom and TIM Brasil.