Vivendi is suspending the sale of its Brazilian telecom subsidiary, GVT, after one of its main bidders, DirecTV, withdrew from the process, reports the Wall Street Journal. People familiar with the matter told the newspaper that the offers made were lower than Vivendi wanted. The company was seeking as much as EUR 7 billion in cash for GVT, according to one of the sources.
A Vivendi spokesman told the newspaper “We’ve decided we’re not going to sell it for silly prices. We’re absolutely convinced we have a great asset. We’re very happy to continue developing it within the Vivendi family”. DirecTV said the satellite TV operator would not move forward and had withdrawn from the process. DirecTV CFO Patrick Doyle said last week at an investor conference that GVT was not a must-have, and that it would only proceed “if the economics are compelling”.
Vivendi is still looking to sell its 53 percent stake in Maroc Telecom for about EUR 5.5 billion, according to someone familiar with the situation. Qatar Telecom, KT, and Etisalat have expressed preliminary interest.
