FOR IMMEDIATE RELEASE
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Buenos Aires, October 13, 2010
Argentine Securities and Exchange Commission
Re: Amendment of the Shareholders’ Agreement of Sofora Telecomunicaciones S.A. (“Sofora”)
Dear Sirs,
I am writing you as Responsible for Market Relations of Telecom Argentina S.A. (“Telecom Argentina” or the “Company”) to inform you that today the Company received a notification from its controlling shareholder Nortel Inversora S.A., informing that Sofora has received a communication from its shareholders’ Telecom Italia S.p.A. and Telecom Italia International N.V. (hereinafter the “Telecom Italia Group”) and W de Argentina – Inversiones S.L. (hereinafter the “Werthein Group” and jointly with the Telecom Italia Group, the “Parties”), relating to the abovementioned matter. The notification states that the Parties have agreed to amend the “2010 Amended and Restated Shareholders’ Agreement” entered into on August 5, 2010, providing that during the time Werthein Group holds a participation corresponding to 42% of Sofora Telecomunicaciones S.A.’s (hereinafter “Sofora”) share capital, the Board of Directors of Sofora shall be composed of nine (9) members, of which four (4), together with their alternates, shall be nominated by Werthein Group and five (5), together with their alternates, shall be nominated by Telecom Italia Group. Two (2) of the members nominated by Telecom Italia Group and one (1) of the members nominated by Werthein Group, as well as their respective alternates, shall qualify as independent directors pursuant to NYSE Rules.
Additionally, the functions of the Consejo de Dirección of Telecom Argentina have been extended and shall include the submission to the Consejo de Dirección of (i) the marketing plans of any business unit of Telecom Argentina and Telecom Personal and bids to be presented in “licitaciones públicas”, exceeding Argentinean Pesos $ 5 million, in order to determine that the same do not violate the Argentinean Antitrust law; (ii) quarterly, the commercial offers to customers launched by Telecom Argentina and Telecom Personal during the prior 3-month period, in order to assess if the same comply with the Argentinean Antitrust law; and (iii) the appointment of the officer of Telecom Argentina and Telecom Personal responsible for Marketing and the officer responsible for the “Telefonia Fija” business unit of Telecom Argentina, who shall be persons who, in the preceding 36 (thirty-six) months, did not serve as board member or officer of any company established in Argentina which is directly or indirectly controlled by Telefónica S.A.
Sincerely,
Pedro Insussarry
Reponsible for Market Relations
Telecom Argentina S.A.