Did the line go down?
TIM's shares have suffered successive falls on the Bovespa stock exchange, and its president in Brazil, Luca Luciani, is under investigation in Italy for fraud.
247 – TIM shares suffered another day of losses on the Brazilian stock market. This is a reaction from investors to the recent announcement of an agreement with the insurance company Porto Seguro. TIM's common shares were the most affected and have accumulated losses exceeding 5% this week.
According to a statement released on Monday, Porto Seguro will begin providing personal mobile service through a virtual network and has signed an agreement with TIM for infrastructure sharing. TIM also announced that it is already in advanced talks with other potential virtual operators. The services are expected to launch in the coming months, but Porto Seguro has not yet detailed its strategy or the products that will be offered.
In addition to the antipathy caused by the news of the partnership, a scandal is further shaking the performance of TIM's shares. The company's president in Brazil, Luca Luciani, is being investigated by the Milan prosecutor's office in Italy on suspicion of fraud, false statements, and regulatory obstruction.
The former CEO of Telecom Italia, Riccardo Ruggiero, is also under investigation. Telecom Italia has not commented on the matter. Several company directors are being investigated for billing fraud.
Luciani had recently been chosen to head Telecom Italia's operations in Latin America, according to a shareholder agreement about to be formalized.