"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," he said on the sidelines of an event.

A government source in Brazil said on Monday the country's antitrust watchdog had not ruled out a possible break-up of TIM Brasil into units to be bought by local rivals.

Speculation about a break-up of TIM Brasil sent Telecom Italia shares up as much as 3.6 percent on Tuesday morning.

(Reporting by Alberto Sisto, writing by Danilo Masoni)

Stocks treated in this article : Telefonica SA, Telecom Italia SpA, TIM Participacoes SA