‘The Inbetweeners’ Canceled by MTV

LOS ANGELES (TheWrap.com) – “The Inbetweeners” now falls solidly in the “canceled” camp.

MTV has decided not to go forward with a second season of the scripted series, which premiered in August and was an adaptation of a British sitcom of the same name.

“While we won’t be moving forward with another season of ‘The Inbetweeners,’ we enjoyed working with the show’s creators and such a talented, funny cast,” an MTV spokesperson told TheWrap in a statement.

The series starred Joey Pollari, Bubba Lewis, Zack Pearlman, Mark L. Young and Alex Frnka as a group of “inbetweeners” – that is, kids who fall somewhere between nerds and jocks on the spectrum of teenage cliques.

The “Inbetweeners” cancelation follows the dropping of the MTV scripted effort “I Just Want My Pants Back” in May after one season.

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Recipes for Health: Roasted Sweet Potato and Crispy Kale Salad — Recipes for Health

Andrew Scrivani for The New York Times

This is a great salad to make with leftover roasted sweet potatoes but you can also roast them just to make the salad. The trick to succeeding with crispy kale is to make sure it is completely dry before you put it in the oven. If you are using bunched kale I recommend that you stem and wash it, spin it twice in a salad spinner, then set the leaves in single layers on a few layers of paper towels and roll them up. You can then refrigerate for up to a day or two. Once the salad is assembled, the portion of kale that you toss with the sweet potatoes will soften, and the kale that surrounds the sweet potatoes will remain crispy.

2 large or 3 medium sweet potatoes

1 generous bunch curly kale (about 1 pound), stemmed, leaves washed and dried thoroughly (see above)

2 tablespoons extra virgin olive oil

Salt to taste

1/4 cup broken pecans, lightly toasted

For the dressing:

1 small garlic clove, pureed

2 ounces Roquefort or blue cheese, crumbled

1 teaspoon chopped fresh thyme leaves

1/2 cup buttermilk

1 tablespoon sherry vinegar

Freshly ground pepper

1. To roast the sweet potatoes, heat the oven to 425 degrees. Rinse the sweet potatoes and pierce in several places with the tip of a paring knife. Line a sheet pan with foil and place the sweet potatoes on the foil. Bake 40 to minutes to an hour, depending on the size of the sweet potatoes. They are done when they are soft and beginning to ooze. Remove from heat and allow to cool.

2. Meanwhile make the dressing (or you can make it a day ahead). In a mini-processor or in a mortar and pestle blend together the garlic, cheese, thyme, buttermilk, and vinegar. Season to taste with salt and pepper. For best results, leave it to sit for at least an hour.

3. To make the crispy kale, heat the oven to 300 degrees. Line two baking sheets with parchment. Make sure that your kale leaves are dry and tear them into medium-size pieces and toss with the olive oil. Gently knead the leaves between your thumbs and fingers to make sure they are coated with oil. Place in an even layer on the baking sheets. Do this in batches if necessary. Place in the oven and roast for 16 to 22 minutes, until the leaves are crisp but not browned. If some of the leaves crisp before others, remove them to a bowl or sheet pan and return the remaining kale to the oven. Watch closely as once the kale browns it will taste bitter. Season to taste with kosher salt or fine sea salt. Allow to cool.

4. Peel the sweet potatoes, quarter lengthwise and slice. Place in a salad bowl and add the pecans and half the crispy kale.

5. Line the edge of a platter with the remaining crispy kale. Toss the sweet potato mixture with the dressing, place in the middle of the platter and serve at once.

Yield: Serves 4 as a main dish

Advance preparation: The crispy kale will remain crisp for a day at room temperature. Sweet potatoes can be baked and refrigerated for up to four days. The salad should be served right away once assembled.

Nutritional information per serving: 378 calories; 17 grams fat; 4 grams saturated fat; 3 grams polyunsaturated fat; 9 grams monounsaturated fat; 14 milligrams cholesterol; 49 grams carbohydrates; 8 grams dietary fiber; 431 milligrams sodium (does not include salt to taste); 11 grams protein

Martha Rose Shulman is the author of “The Very Best of Recipes for Health.”

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Groupon CEO Mason offers to step down

Groupon Inc Chief Executive Andrew Mason, under fire for a plunging share price and tapering growth, declared on Wednesday he would fire himself if he ever thought he was the wrong man for the job.

Mason, whose performance at the helm will come under scrutiny from his board of directors during a regular board meeting Thursday, said it would be "weird" if they did not. But he said he believed the board was comfortable with his strategy.

Shares in the company, once touted as innovating local business advertising t hrough the marketing of Internet discounts on everything from spa treatments to dining, surged 8 percent to $4.25 i n the afternoon.

"It would be more noteworthy if the board wasn't discussing whether I'm the right guy for the job," Mason said in an interview from a Business Insider conference in New York. "If I ever thought I wasn't the right guy for the job, I'd be the first person to fire myself."

"As the founder and creator of Groupon, as a large shareholder ... I care far more about the success of the business than I do about my role as CEO," he said.

Groupon has shed four-fifths of its value since its public trading debut as an investor favorite during last year's consumer dotcom IPO boom, and Mason himself has presided over a string of high-profile executive departures.

Wall Street has grown uneasy about the viability of its business as fever for daily deals has cooled among consumers and merchants, hurting its growth rate.

In the interview broadcast from the conference, the outspoken and sometimes-zany co-founder argued his company was going through a period of volatility but believed it was on the right path. Groupon's efforts to reduce its reliance on plain vanilla deals include bumping up its "Goods" retail business, increasing the selection of "persistent" or long-running deals, and allowing users to search for such deals on demand.

Shares in Groupon spiked after the interview and were up 8 p ercent at $4.2 6, still way below its $20 market debut price.

Groupon and rivals in the daily deals business, like Amazon.com-backed LivingSocial, were supposed to change the very nature of small-business advertising. Instead, they were forced to revamp their business models as evidence mounts that their strategy was flawed.

This month, Groupon reported another quarter of disappointing earnings, and its stock went as low as $2.60 on Nov. 12.

Europe has been a particular problem for Groupon, partly because the sovereign debt crisis has sapped demand for higher-priced deals. Groupon was also offering steeper discounts, turning off some European merchants.

International revenue, which includes Europe, grew just 3 percent to $277 million in the third quarter, while North American revenue surged 80 percent to $292 million.

Adding to its difficulties, the U.S. Securities and Exchange Commission is looking into Groupon's accounting and disclosures, areas that raised questions among some analysts during its IPO.

But Mason shrugged off speculation that the company might run into a cash crunch and go bankrupt. The company has said it had $1.2 billion in cash and equivalents with no long-term debt.

"There was a period when those stories started that I'd go to my CFO and say: 'How would that happen, walk me through what would be required for us to actually go bankrupt'," Mason said. "And it's like an end of days, apocalyptic scenario. The business would have to go into severe negative growth for something like this. The scenario is so absurd there's no evidence for it."

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Charges dropped against NIU officer

Sex assault charges against a former Northern Illinois University police officer were dropped Tuesday after new revelations of possible irregularities in the investigation surfaced, the officer’s attorney said.

The charges against Andrew Rifkin were dropped following a hearing where a campus police IT specialist testified that he was summoned around 10 p.m. on Nov. 9, by NIU Police Chief Donald Grady and was told to remove between 60 and 70 files from the chief’s computer, Rifkin attorney Bruce Brandwein said.

Earlier that day, university administration had appointed a new supervisor to oversee Grady and the department. That same day, a DeKalb County judge had ordered the NIU police to sign an affidavit confirming that all evidence in the Rifkin case had been handed over to county prosecutors, following a previous finding that the department had withheld evidence.

Grady was placed on administrative leave the following day.

Brandwein said the specialist did not know whether the files he removed pertained to the Rifkin investigation, but Brandwein said he found the timing curious.  After hearing about the removal of the files, DeKalb County State’s Atty. Clay Campbell told the judge that prosecutors would drop the charges against Rifkin, Brandwein said.

“It was incredible,” he said. “I applaud the state’s attorney for doing the right thing.”

An attempt to reach Campbell for comment was not successful Tuesday night.

Rifkin, 25, was fired from the department in October 2011 after it was alleged he sexually assaulted an NIU student. However, the NIU police’s investigation of the case came under fire this month when it was learned that the department had failed to turn over reports of witnesses who indicated that Rifkin and the student had engaged in consensual sexual activity.

Those reports ended up in a personnel file in what the NIU police said was an oversight. But DeKalb County Judge Robin Stuckert called it an “egregious” error and ruled that the department had purposely withheld the evidence.

That prompted university officials to place Grady on leave, pending a final disciplinary action. NIU also said it plans to terminate the officer who conducted the investigation against Rifkin.

chicagobreaking@tribune.com
Twitter: @chicagobreaking

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Nintendo: more than 400,000 Wii Us sold in US

NEW YORK (AP) — Nintendo says it has sold more than 400,000 of its new video game console, the Wii U, in its first week on sale in the U.S.

The Wii U launched on Nov. 18 in the U.S. at a starting price of $ 300. Nintendo says the sales figure, based on internal estimates, is through Nov. 24.

Six years ago, Nintendo Co. sold 475,000 of the original Wii in that console’s first seven days in stores. The original Wii remains available, and Nintendo says it sold more than 300,000 of them last week, along with roughly 250,000 handheld Nintendo 3DS units and about 275,000 of the Nintendo DS.

Wedbush analyst Michael Pachter estimates that Nintendo will ship 1 million to 1.5 million Wii Us in the U.S. through the end of January.

Gaming News Headlines – Yahoo! News

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U.S. author sues filmmaker Tyler Perry over plot of 2012 film

NEW YORK (Reuters) – An American author sued the prolific filmmaker Tyler Perry in a federal court on Tuesday, accusing him of lifting the plot of his 2012 movie, “Good Deeds,” from her book.

Terri Donald, who also writes under the pseudonym TLO Red’ness, says Perry based the film on her 2007 book, “Bad Apples Can Be Good Fruit.”

The lawsuit, filed in Philadelphia, says Donald sent a copy of her book to Perry’s company before production on the movie began.

Donald is seeking $ 225,000 in initial damages as well as an injunction requiring the company to add a credit for her book in the opening and closing credits. The lawsuit also calls for the company to provide an accounting of the movie’s revenues.

The drama, which stars Perry as a wealthy businessman who meets a struggling single mother, earned approximately $ 35 million at the box office after its February release.

Representatives for Perry and Lions Gate Entertainment, which released the film and is also named as a defendant in the lawsuit, did not respond to requests for comment on Tuesday.

Perry is best known for his portrayal in drag of the character Madea in several of his films.

(Reporting by Joseph Ax; Editing by Paul Simao)

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Recipes for Health: Spinach and Turkey Salad — Recipes for Health

Andrew Scrivani for The New York Times

Turkey or chicken transforms this classic spinach salad (minus the bacon) into a light main dish, welcome after Thanksgiving and before the rest of the holiday season feasting begins.

2 cups (12 ounces) shredded cooked turkey, chicken breast or chicken breast tenders

1 6-ounce bag baby spinach

6 white or cremini mushrooms, thinly sliced

1 cup cooked wild rice

2 tablespoons chopped walnuts

1 to 2 hard boiled eggs (to taste), finely chopped (optional)

2 tablespoons chopped chives

1 to 2 tablespoons chopped fresh herbs such as parsley, tarragon or marjoram

For the dressing:

2 tablespoons fresh lemon juice

1 tablespoon red wine vinegar, tarragon vinegar or sherry vinegar

1 teaspoon Dijon mustard

Salt and freshly ground pepper

1 small garlic clove, pureed

1/3 cup extra virgin olive oil

2 tablespoons plain low-fat yogurt

1. Combine all of the salad ingredients in a large salad bowl. Whisk together the lemon juice, vinegar, Dijon mustard, salt, pepper, garlic, olive oil and yogurt. Toss with the salad just before serving.

Yield: Serves 4 as a main dish

Advance preparation: The salad can be assembled and the dressing mixed several hours before serving. Refrigerate and toss together when ready to serve.

Variation: Add 1 ripe but firm persimmon, peeled, cored and sliced, to the mixture.

Nutritional information per serving: 375 calories; 25 grams fat; 4 grams saturated fat; 5 grams polyunsaturated fat; 15 grams monounsaturated fat; 53 milligrams cholesterol; 14 grams carbohydrates; 2 grams dietary fiber; 119 milligrams sodium (does not include salt to taste); 26 grams protein

Martha Rose Shulman is the author of “The Very Best of Recipes for Health.”

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Grim recovery forecast for U.S., global economies

WASHINGTON — In a grim new forecast, a leading international economic group sharply cut its outlook for U.S. and global growth next year and warned that the debt crisis in Europe and fiscal policy risks in America could plunge the world back into recession.

As it stands now, the industrialized world is looking at a muted and uneven recovery over the next two years, according to the Organization for Economic Cooperation and Development.

The Paris-based OECD projected gross domestic product across its 34 member nations — which include the U.S., Japan and the 17-nation Eurozone — to grow a sluggish 1.4% next year. That is down from 2.2% that the group had forecasted six months earlier.

Growth prospects in the U.S. also were slashed for next year. Experts at the OECD now see inflation-adjusted GDP, the broadest measure of economic activity, rising 2% next year in the U.S., roughly equivalent to this year and down from its earlier forecast of an increase of 2.6%.

The new projections are all the more sobering in that they are based on assumptions that Europe's debt crisis won't get much worse and that the U.S. won't go over the so-called fiscal cliff — a combination of more than $500 billion in automatic tax hikes and federal spending cuts slated to begin at the start of next year.

Quiz: How much do you know about the 'fiscal cliff'?

"If key adverse risks cannot be averted, and especially if the Eurozone crisis were to intensify significantly, the likely outcome would be considerably weaker, potentially plunging the global economy into deep recession and deflation, with large additional rises in unemployment," the OECD said.

The report, released Tuesday, is on the pessimistic side.

Although economists widely agree on the recession risks in the event that the U.S. isn't able to solve the fiscal impasse, a number of experts now say that the U.S. and global economies could see considerably stronger growth next year if Washington can reach agreement on tax and spending policies that avoid a big fiscal contraction in 2013.

"The economy in the U.S. is really poised to grow," said Bernard Baumohl, chief global economist at the Economic Outlook Group, noting that GDP growth in the U.S. could surge to a solid 3.5% or higher next year if the budget issues are resolved.

The latest forecast from the Federal Reserve, compiled in mid-September, sees U.S. GDP increasing 2.5% to 3% next year.

Baumohl's reasons for greater optimism include a recovering housing market, improving job growth and healthier personal finances, all of which should help drive stronger consumer spending.

Total consumer debt, which has fallen for four years, dropped by $74 billion to $11.31 trillion in the third quarter from the previous quarter, and it is now down $1.37 trillion from the peak in September 2008, according to a report Tuesday from the New York Fed.

Reflecting these trends, the Conference Board said Tuesday that its latest survey showed consumer confidence at its highest level since early 2008, results similar to a survey by the University of Michigan.

American business sentiments, however, have been more cautious of late, and many companies have held back on making investments in recent months. But banks are generally in good shape, and big companies are sitting on mountains of cash and are expected to ramp up investments once the fiscal and tax pictures become clearer.

The OECD report nodded to these factors, but noted that the global recovery slowed markedly over the last year amid faltering confidence and weakening world trade, in part because of problems in the Eurozone, which contributed to an unexpectedly strong slowdown in developing countries such as China.

The 17-nation Eurozone will probably remain in recession well into next year, the OECD said.

Meanwhile, Japan, the world's third-largest economy, has fallen back into a downturn after a growth spurt last year aided by massive reconstruction spending following the earthquake and tsunami in March 2011. The Japanese economy is expected to move at a lumbering pace over the next two years.

The outlook for China, Brazil and India — three of the biggest developing economies, none of which is a member of the OECD — looks comparatively brighter:  Growth will probably accelerate next year and in 2014, with China, the world's second-largest economy, again leading the pack.

The OECD forecast sees China's GDP expanding 8.5% next year and nearly 9% in 2014 after slowing this year to about 7.5%.

Although far from immune from the troubles in the U.S. and Europe, which still account for much of the global demand for goods, China and other major emerging economies have more wherewithal to boost growth than their more-indebted developed counterparts by ramping up government spending and lowering interest rates.

The report notes that spending cuts throughout OECD member countries have taken a toll on economic growth, particularly in the Eurozone, where GDP growth for next year was slashed to -0.1% from a positive rate of 0.9%.

Many developed countries are now struggling with financial and economic challenges related to an aging population, large public debts and high unemployment.

Assuming Europe's debt crisis stabilizes, the Eurozone is forecast to recover in 2014. For OECD countries overall, GDP growth is projected to pick up in 2014 to 2.3%.

The U.S. economy is expected to outperform most other OECD nations in 2014, with its GDP stepping up to a more sturdy growth of 2.8%. That compares with the Fed's forecast of 3% to 3.8% growth in 2014.

Either way, U.S. economic growth isn't likely to come close to keeping up with the rapid advance of developing countries, notably China.

Last year, the U.S. accounted for 23% of the global economy, with the Eurozone and China tied for second, each with a 17% share each.

But by 2030, the OECD estimates, China's share of the global economy will rise to 28%, while the U.S. will slip to No. 2 with 18% of world GDP, and the Eurozone's share will fall to 12%.

don.lee@latimes.com

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Gunfire at gang funeral: 'It s broad daylight,' says stunned neighbor

Rev. Corey Brooks talks about shooting after a funeral in Chicago on Monday, November 26, 2012. (Scott Strazzante, Chicago Tribune)

Shots rang out, causing panic and chaos as hundreds of mourners were leaving a Catholic church on the South Side following funeral services Monday for a slain reputed gang member.

As people scattered for exits, a woman knocked Deborah Echols-Moore, 59, to the floor and fell atop her. Her shoes were thrown off her feet. When she stood back up, she fled barefoot out a door.

“When I came outside, you still can hear shooting. Boom! Boom! Boom! I still ran…people was running behind me,” the longtime CTA employee said not long after the 12:30 p.m. shooting. “You didn’t know which way to go or what to do. All I knew to do was run for my life.”

Chicago police said one man was killed, another critically injured in the bloodshed at St. Columbanus Church. Police identified both as Gangster Disciples members and convicted felons, illustrating once again the high risks of gang membership in a year in which rising homicides have brought Chicago unwanted national attention.

GDs alone make up more than a quarter of the city’s approximately 470 homicide victims. About 60 percent of this year’s homicide victims were gang members, according to department statistics.

Police were still investigating who was responsible for the shooting, but investigators said the neighborhood has long been rife with conflict between GDs and rival Black Disciples.

Illustrating the sudden, often unpredictable nature of the violence, police Superintendent Garry McCarthy just a couple of hours earlier was touting the department’s crime-fighting strategies in tamping down the city’s rate of violence since earlier in the year when homicides soared. Through Sunday, homicides have risen more than 19 percent over the same period a year earlier, department records show.

There were five fewer homicides during the first 25 days of November compared to the same period in 2011, according to department statistics. But shootings during the first 25 days of this month have risen sharply by 45 percent.

From November 1 through Sunday there were 161 shootings compared to 111 during the same period in 2011, department statistics show.

Rev. Corey Brooks, a well-known South Side pastor who officiated at Monday’s services for James Holman, 32, said a church would have been off-limits for gangbangers at one time.

“Now we are living at a day and time where these younger criminals have no regard for life or for street rules,” he said.

Holman, identified by police as a gang member, was gunned down last week at an apartment building in the Washington Park neighborhood.

The shooting took place just outside St. Columbanus, the same church where gangster Al Capone’s wife and mother attended mass daily more than half a century ago.

A Cook County Medical Examiner's spokesman identified one of the two victims as Sherman Miller, 21, and said he was pronounced dead at Stroger Hospital. A 26-year-old man was shot in the back and listed as in “extremely critical condition,” a hospital spokesman said.

Miller, who is also identified in court records as William Miller, was on parole for being in possession of a stolen vehicle and escaping from police custody, according to the Illinois Department of Corrections Web site.

The surviving victim has a 2004 felony weapons conviction in his criminal background, court records show.

Police said two guns were recovered, one down the block from the church at East 71st Street and South Prairie Avenue and another on one of the victims.

About a dozen bullet casings littered the steps outside the church where yellow evidence markers were placed. Beat cops blocked off traffic with their squad cars and sealed off the church’s entrance with yellow and red tape. As evidence technicians took photos of the crime scene, detectives went door-to-door to nearby homes scouring for witnesses.

April Smith, 30, said she looked out a second-floor window of her home when she heard her car alarm sound off and noticed a man wearing a black hooded sweatshirt and blue jeans walking toward the church entrance on 71st Street. She then heard about a dozen gunshots and saw two passersby crouch for protection.

Moments later, the same man in the sweatshirt ran back onto Prairie and fled south, said Smith. Mourners then frantically exited the church.

“To know that something like that happened right across the street...it’s terrible,” Smith, who has lived at her home for seven years, said in disbelief. “It’s broad daylight.”

Brooks, who is pastor of New Beginnings Church of Chicago in the Woodlawn neighborhood and is considering a run for former U.S. Rep. Jesse Jackson Jr.’s vacant congressional seat, said about 500 people attended the funeral, including about 50 children. The church was so crowded that people were standing in the back.

Brooks had finished the eulogy and Holman’s family and close friends had gone out the front door of the church when shots rang out.

“That's when all the gunfire broke out and it was just crazy,” Brooks said. “People were hollering and screaming and kids running everywhere.”

Charles Childs, a co-owner of the A.A. Rayner and Sons Funeral Home across the street from the church, held an uneventful visitation for Holman on Sunday. On Monday he said he saw the gunman firing his weapon as he came down the front steps outside the church.

“No place is safe,” he said. “It’s just despicable.”

Tribune reporter Naomi Nix contributed to this story.

jgorner@tribune.com
lford@tribune.com
csadovi@tribune.com

Twitter: @ChicagoBreaking

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Exclusive: Egyptian investor seeks to put stamp on Telecom Italia

DUBAI (Reuters) – Egyptian entrepreneur Naguib Sawiris aims to shake up debt-laden Telecom Italia and steer it towards expansion in Brazil if shareholders warm up to his proposal for a 3 billion euro ($ 3.9 billion) cash infusion.

The billionaire tycoon, who got to know Italy well when he owned the third-biggest mobile operator Wind, has put on the table a capital increase that could make him one of the biggest shareholders in Telecom Italia.

Details on the structure of the proposed transaction are scarce, but Sawiris told Reuters that he proposed that the capital increase be open to all shareholders, not just himself, and that it should be conducted around the current market price of 0.70 euros per share.

That is likely to draw the ire of other Telecom Italia shareholders, including Spain’s Telefonica and the three Italian financial institutions who together own 22.4 percent via an unlisted holding company called Telco.

They value Telecom Italia at 1.50 euros per share in their accounts, and Marco Fossati, whose family’s Findim Group SA owns 5 percent of the Italian operator, on Monday said 1.50 was the “correct price” for any capital increase.

Sawiris, going against a trend of retreating investment in crisis-hit southern Europe, said he might also bring in some of his old Wind associates to put Telecom Italia back on the path to growth.

“This proposal will provide a more stable financial structure for Telecom Italia going forward, more growth in Latin America and Brazil, and improved management through the infusion of people who have an excellent knowledge of the Italian market,” Sawiris told Reuters.

Sawiris initially approached Telefonica and the other shareholders in Telco about the possibility of carrying out a capital increase at the holding company level. He was rebuffed, so decided to approach the Italian group directly.

“We are willing to participate in the capital increase, but shareholders have the choice not to get diluted and join in putting the money,” he said.

“If they do not want to, we will come and replace them. But they will benefit from a higher stock price and a more stable company and a company that will grow.”

It remains to be seen whether his vision for the group will be shared by Telecom Italia’s management and core shareholders.

Telefonica, insurer Assicurazioni Generali, and banks Mediobanca and Intesa Sanpaolo had the Sawiris’ offer dropped onto them as a bombshell two weeks ago, insiders have said.

“Sawiris is not a man to go in without being sure he can drive the strategy,” one source familiar with the thinking of the core shareholders said.

Sawiris told Reuters he was also opposed to a current plan to spin off Telecom Italia’s fixed-line network, which is backed by some core investors as a way to raise badly needed cash, and by the Italian government as a means to speed up broadband investment.

“I believe this is a catastrophe,” Sawiris said. “If Telecom Italia does that, they will lose the only differentiator they have left in the telecom market in Italy.”

Telecom Italia is now in talks with an Italian state-backed investment fund over such a spin-off. Under the plan, the fund would take a minority stake in the new company in exchange for Telecom Italia effectively becoming a wholesaler of broadband capacity to other companies.

Proponents of the spin-off argue the move would help Telecom Italia reduce debt while accelerating the modernization of the woeful Internet infrastructure in Europe’s fourth-largest economy.

STRATEGY CROSSROAD

Telecom Italia’s board will meet on December 6 to discuss the network spin-off and whether to bid for Vivendi’s GVT, a broadband specialist in Brazil, to complement its TIM Brasil mobile business unit in the fast-growing market.

GVT’s owner, Vivendi, is seeking up to 7 billion euros for GVT, which provides fixed telephone, broadband, and TV services in 120 Brazilian cities. Preliminary bids are due in December, sources have told Reuters.

Sawiris is waiting in the wings, though he says he has not had any direct contact from Telecom Italia since sending a letter of interest two weeks ago.

However, advisers from both sides – Lazard for Sawiris and Rothschild for Telecom Italia – have been communicating, according to people familiar with the matter.

Meanwhile, sources close to the telecom group’s shareholders have complained of a lack of detail in the Sawiris proposal.

Nuno Matias, a telecoms analyst at Espirito Santo bank, said while Sawiris’s arguments about seeking growth in Brazil via the GVT takeover were persuasive, the tycoon could face an uphill battle getting the board and shareholders onside.

“Sawiris isn’t alone; there are controlling shareholders of Telecom Italia, and they have their own interests,” he said.

“If Telecom Italia strengthens in Brazil then it sets up a conflict with Telefonica.”

Sawiris pointed out that he tried talking to Telefonica.

“I met with them, but my feeling is that they are conflicted. They are happy where they are today holding Telecom Italia as a hostage and preventing it from growing into Latin America.”

Telefonica and Telecom Italia are the number one and number two players in Brazilian mobile, respectively, and also compete in Argentina. The conflict means that Telefonica cannot take part in board deliberations at Telecom Italia over the Latin American units.

Telefonica’s Chief Financial Officer Angel Vila said last week that the group wanted to remain a long-term shareholder in Telecom Italia, and opposed a capital increase.

Telecom Italia has made debt-cutting a priority since late 2008. Cost cuts and asset sales have trimmed net debt more than 4 billion euros to 29.5 billion at the end of September.

Morgan Stanley predicted its net debt was likely to stand at 27.8 billion euros at year-end, or 2.7 times earnings before interest, tax, depreciation and amortization (EBITDA), above sector averages and in the warning zone for rating agencies.

Sawiris, who sold Wind to Vimpelcom last year, wants to re-enter Italy by investing in the incumbent operator, betting on low valuations and turnaround potential in old-world telecoms.

“I’ve worked in Italy for five years and what I’ve learned that very few investors have the insight on what is the real story in Italy,” Sawiris said.

($ 1 = 0.7713 euros)

(Additional reporting by Leila Abboud in Paris and Lisa Jucca in Milan; Editing by Will Waterman)

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