The board of Brazil's Securities and Exchange Commission, the CVM, decided late Wednesday that Telecom Italia SpA (TI) controlling shareholder Telco has no need to acquire minority shareholders stake in TIM Participacoes (TSU), its Brazilian unit.

The board accepted an appeal from Telco - a group comprising Italian banks Intesa Sanpaolo (ISP.MI), Mediobanca SpA (MB.MI), insurer Assicurazioni Generali (G.MI) and the Benetton family as well as Spanish phone giant Telefonica SA (TEF) - reversing a decision made earlier this year.

In January, CVM ruled the operation by which Telco took control of Telecom Italia led to a change of control at TIM and, therefore, the company had to make a tag-along offer to TIM shareholders. Analysts estimate the offer could cost somewhere in the region of EUR500 million.

-By Rogerio Jelmayer, Dow Jones Newswires; 55-11-2847-4521; rogerio.jelmayer@dowjones.com