Vivendi opts for exclusive talks with Telefonica on GVT sale

News General Brazil 28 AUG 2014
Vivendi opts for exclusive talks with Telefonica on GVT sale
Vivendi has decided to enter exclusive negotiations with Telefonica on the sale of its Brazilian broadband operator GVT. The decision comes within a day of Telefonica raising its bid to EUR 7.45 billion, beating an offer of EUR 7 billion from Telecom Italia. Telefonica's offer also comes with a higher cash portion and a stake in Telefonica Brasil. 

If Vivendi reaches agreement on the sale of GVT, it will exit the telecoms business completely, after earlier selling French operator SFR and Maroc Telecom. While the French company has decided to focus on its media activities, Vivendi said it did not rule out taking small stakes still in distribution partners. The possible deal with Telefonica would give it a significant new partner for further developing its content activities in Europe and Latin America. 

Vivendi said it also found Telefonica's offer for GVT more attractive, resulting in a profit of over EUR 3 billion. In addition, the bid carries limited risks, both in execution and after completion of the sale. The offer from Telecom Italia would see Vivendi become the Italian operator's largest shareholder, as well as a significant minority shareholder in TIM Brasil, while leaving unresolved the role of Telefonica as shareholder in Telecom Italia. 

Categories:

General

Companies:

Telecom Italia,  GVT,  Telefonica Brasil,  Vivendi,  Telefonica

Countries:

Brazil

Tags:

Voice services, Internet Access, M&A buyouts & divestments

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