Cash-strapped Telecom Italia has ruled out breaking up the company's Brazilian wireless unit TIM Participacoes. CEO Marco Patuano said the board is not studying any break-up of TIM Brasil. I will never grow tired of repeating that it is for us a strategic company.

The outfit is under pressure to flog the outfit to deal with its huge debt and underinvested network. Speculation about a break-up of TIM Brasil sent Telecom Italia shares up as much as 3.6 percent on yesterday. The Brazilian government said that the country's antitrust watchdog had not ruled out a possible break-up of TIM Brasil into units to be bought by local rivals.

However, it looks like that idea is far from Telecom Italia’s mind. It is not clear what is going through its mind to get it out of trouble.