Private-equity firms KKR and Apax are teaming up to bid against DirecTV to acquire Vivendi’s GVT unit in Brazil, Bloomberg reports, citing unnamed people with knowledge of the matter. The group, which would also include Gavea Investimentos, owned by JPMorgan Chase, and Cambuhy Investimentos, is offering EUR 5 billion for GVT, compared with Vivendi’s asking price of about EUR 8 billion, said one of the people.
Grupo BTG Pactual is still considering whether to join the bid, the people added. The private-equity group will get an EUR 6 billion loan from Sao Paulo-based Banco Bradesco to finance the acquisition, another person said.
Satellite TV services provider DirecTV remains interested in buying GVT and may be able to come closer to Vivendi’s asking price because of the efficiencies the deal would create, according to another person familiar with the situation.
Potential buyers are preparing for the second round of bids in the auction, which is scheduled for completion by end-February.
