Telefonica has announced that it has reached an agreement with French media conglomerate Vivendi to exchange 46.0 million of its treasury shares, representing 0.95 percent of its capital, for 58.4 million preferred shares in Telefonica Brasil, representing 3.5 percent of its Brazilian unit. Vivendi had acquired the shares in Telefonica Brasil as part of the sale of its Brazilian broadband unit GVT to Telefonica. In its statement to Spanish market watchdog CNMV, Telefonica said the share exchange remained subject to approval by the Brazilian competition authority (CADE).
Vivendi also released a statement confirming the agreement, adding that “today’s transaction reflects the group’s intention to become more active in Europe and to pursue strategic partnerships there.” The deal could be indicative of its plans for Telecom Italia’s Brazilian unit TIM Brasil. The French media giant increased its stake in Telecom Italia to 14.9 percent last month, replacing Telefonica as the Italian operator's largest shareholder. A Bloomberg report last month suggested Vincent Bollore, Vivendi's chairman and largest shareholder, wants Telecom Italia to consider a disposal of TIM Brasil in the next two years to focus on Europe.
