French media giant Vivendi (EPA:VIV) has agreed to exchange 58.4 million (equal to a 3.5% stake) of its Telefonica Brasil preferred shares for 46 million ordinary shares (a 0.95% stake) in Telefonica (MC:TEF).
“Today’s transaction reflects the…
French media giant Vivendi (EPA:VIV) has agreed to exchange 58.4 million (equal to a 3.5% stake) of its Telefonica Brasil preferred shares for 46 million ordinary shares (a 0.95% stake) in Telefonica (MC:TEF).
“Today’s transaction reflects the group’s intention to become more active in Europe and to pursue strategic partnerships there,” read a company statement.
Vivendi will retain a 4% stake in Telefonica Brasil, having accepted a 7.5% stake in the subsidiary following the sale – completed in May – of GVT to Telefonica. It also received shares comprising 8.3% of Telecom Italia as part of that transaction, subsequently buying an additional 6.6%.
Because Vivendi also indirectly owns shares in Telecom Italia’s TIM Brasil, Brazilian competition authority Cade must approve the transaction. The watchdog previously forced Telefonica to choose between Telefonica Brasil and TIM, playing a role in the Spanish telecom operator’s decision to exit Telecom Italia holding Telco.
Market observers are so far unclear on Vivendi chairman Vincent Bollore’s strategy around Telecom Italia, with some believing he sees an opportunity to use the telco as a content platform, and others saying he is simply playing the role of an activist investor.
Vivendi sold out of telecoms assets Morocco’s Maroc Telecom, France’s SFR and Brazil’s GVT, with a view to focusing on media.
