Telecom Italia (TI) has reportedly hired Citigroup, Mediobanca and Banco Bradesco to advise it on its planned acquisition of Vivendi’s Brazilian fixed-line unit GTV.
The plan, which would see TI buy GVT in return for selling a stake in itself to the…
Telecom Italia (TI) has reportedly hired Citigroup, Mediobanca and Banco Bradesco to advise it on its planned acquisition of Vivendi’s Brazilian fixed-line unit GTV.
The plan, which would see TI buy GVT in return for selling a stake in itself to the French media group, could be finalised within the next few weeks, Reuters reported citing sources familiar with the matter.
TI CEO Marco Patuano and Vivendi chairman Vincent Bollore reportedly begun discussing the potential agreement before Spain’s Telefonica, TI’s largest individual shareholder, made its €6.7bn (US$9bn) offer for GVT earlier this week.
Yesterday, Bloomberg cited two people with knowledge of the matter as saying Vivendi receiving shares in TI in exchange for GVT was one option under consideration. TI might also offer some cash and pursue a capital increase to raise funds, the sources added.
Telefonica’s plan to buy GVT would see Vivendi acquire the Spanish incumbent’s 8.3% stake in TI once the deal has closed. The Madrid-based telco has mandated JP Morgan for the planned acquisition, according to the Reuters report.
Earlier this week, Patuano said TI would assess all options for its Brazilian mobile unit TIM Brasil but will not make “crazy offers”. He also previously commented that TI has not ruled out a merger between TIM and GVT.
Telecom Italia declined to comment on the matter, while Vivendi and Telefonica were not immediately available for comment.
