Telecom Italia (TI) has confirmed it is carrying out a “detailed review” to determine whether it should submit an offer to French media group Vivendi to merge their Brazilian units, TIM Brasil and GVT.
Responding to recent media speculation on the…
Telecom Italia (TI) has confirmed it is carrying out a “detailed review” to determine whether it should submit an offer to French media group Vivendi to merge their Brazilian units, TIM Brasil and GVT.
Responding to recent media speculation on the subject, the Italian incumbent said in a short statement that such an offer would be “to create an industrial combination that would include integration of the Brazilian businesses of the two groups”.
The Milan-based telco stressed that no offer has yet been finalised, adding that the decision to proceed with such a deal would be subject to the approval of its own corporate bodies and those of TIM Brasil.
TI CEO Marco Patuano and Vivendi chairman Vincent Bollore reportedly met in Paris on Wednesday to discuss the potential tie-up, however a formal offer is not expected before the Paris-based company’s 28 August board meeting.
TI – reportedly advised by Citigroup, Mediobanca and Banco Bradesco – has reportedly proposed selling a stake in itself to Vivendi and merging the Brazilian units. As a sweetener, the Italian telco has offered to help distribute Vivendi’s media content in Italy and Brazil, the Wall Street Journal cited a person familiar with the talks as saying.
The two companies reportedly begun discussing the subject before Spain’s Telefonica, the Italian telco’s largest individual shareholder, made its €6.7bn (US$9bn) offer for GVT early last week.
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 reportedly mandated JP Morgan for the planned acquisition.
Brazil’s four largest mobile operators by subscribers are Telefonica’s Vivo, TIM Brasil, America Movil’s Claro and Oi. Alternative operators such as GVT also offer broadband, cable and fixed-line phone services.
