BUENOS AIRES -(Dow Jones)- Telecom Argentina SA (NYSE:TEO) (TEO) has appealed a judge's decision to extend the term of a monitor placed inside the company to assess whether Spanish company Telefonica SA's (NYSE:TEF) (TEF) stake in its Italian parent creates a conflict of interest in Argentina.

Telecom Argentina (NYSE:TEO) said it appealed the court order in a brief statement filed late Friday with the Buenos Aires Stock Exchange.

The court order was originally issued in February at the request of Gerardo Werthein, along with others. Werthein holds a 48% stake in Sofora SA, which indirectly controls Telecom Argentina (NYSE:TEO) , and in which Telecom Italia (NYSE:TI) (TI) controls a further 50%.

The company said in February that the court-ordered monitor would also investigate Sofora, its affiliate Nortel Inversora SA (NYSE:NTL) (NTL), and Telecom Personal SA, Telecom Argentina's (NYSE:TEO) cellphone subsidiary.

The monitor was originally given two months to assess the situation, but a judge recently extended that term to conclude 10 days after Telecom Argentina's (NYSE:TEO) and Nortel's annual assemblies, Telecom Argentina (NYSE:TEO) said in Friday's statement.

Telecom Argentina's (NYSE:TEO) assembly will be held April 29.

Telefonica's (NYSE:TEF) purchase of a minority stake in Telecom Italia (NYSE:TI) last year raised concerns about a threat to competition and a conflict of interest in Argentina's telecommunications sector and provoked speculation that the antitrust regulator may take measures. Telefonica de Argentina SA (NYSE:TAR) (TAR) is Telecom Argentina's (NYSE:TEO) primary fixed line and cellphone competitor in the country.

-By Drew Benson, Dow Jones Newswires; 5411-4311-3127; andrew.benson@ dowjones.com

    (END) Dow Jones Newswires   04-11-08 1838   Copyright (c) 2008 Dow Jones & Company, Inc.