This excerpt taken from the TI 20-F filed May 19, 2006.
Reorganization in Brazil
During March 2006, the merger of Blah! and CRC Centro de Relacionamento com Clientes, into TIM Celular was executed and the project to contribute all the TIM Celular shares held by TIM Brasil to TIM Participaçoes was approved by the TIM Participaçoes extraordinary shareholders meeting. Both of these transactions are part of the process to streamline the corporate structure of the companies of the Telecom Italia Group which make up the mobile sector. This process will encompass all the companies that are currently 100 percent-controlled, directly or indirectly, by TIM Participaçoes (namely, TIM Sul S.A., TIM Nordeste Telecomunicaçoes S.A., TIM Celular S.A. and Maxitel S.A.), with the aim of (i) further uniting and rationalizing the operations of the activities relating to the mobile business, (ii) significantly reducing the costs associated with maintaining distinct and separate companies, (iii) developing synergies among the various companies and (iv) improving tax and financial efficiency.