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Brazil regulator could demand sale of TIM Participacoes: source

BRASILIA (Reuters) - Brazil's telecom regulator Anatel would demand that Telecom Italia sell its Brazilian mobile operator affiliate TIM Participacoes if Spanish group Telefonica SA acquired 100 pct of Telco, the controlling shareholder in Telecom Italia, a source at Anatel told Reuters on Tuesday.

Telefonica said on Tuesday it had agreed to a deal worth around 860 million euros ($1.16 billion) to increase its stake in Telco.

(Reporting by Leonardo Goy; Writing by Silvio Cascione; Editing by Gerald E. McCormick)

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