T.Italia settles Bolivia claim for $100 mln

[Judi Lynn]

T.Italia settles Bolivia claim for $100 mln
lunes 8 de noviembre de 2010 15:19 GYT

MILAN Nov 8 (Reuters) - Telecom Italia (TLIT.MI: Cotización) said on Monday it has accepted compensation of $100 million to resolve an outstanding legal claim dating from 2007 when the Bolivian government expropriated the group's stake in Entel Bolivia.

The agreement, signed between Telecom Italia's unit ETI and the Bolivian government, settles all legal actions between the two sides, the Italian telecoms group said in a statement.

Bolivia has rattled investors with a string of nationalizations, part of president Evo Morales's strategy to give the state control over basic services.

Morales is a close ideological ally of Venezuela's Hugo Chavez who has also proceeded with a series of nationalisations in his country.

Telecom Italia said the agreement with Bolivia will have a positive effect on its group profit and loss statement of around 30 million euros.

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