Private equity firms KKR & Co and Apax Partners are allegedly joining forces to rival US-based DTH provider DirecTV in bidding for Vivendi’s Brazilian fixed-line and broadband asset GVT, according to reports.
Bloomberg claims that the consortium also…
Private equity firms KKR & Co and Apax Partners are allegedly joining forces to rival US-based DTH provider DirecTV in bidding for Vivendi’s Brazilian fixed-line and broadband asset GVT, according to reports.
Bloomberg claims that the consortium also includes Cambuhy Investimentos and JP Morgan’s Gavea Investimentos, with Grupo BTG Pactual mulling over whether to join.
The syndicate is said to be willing to pay €5bn (US$6.8bn), short of the €7bn Vivendi is rumoured to be looking for the asset. The private equity bid would be backed by a US$3bn loan from Banco Bradesco.
French media group Vivendi is looking to re-orientate its business away from telecoms and mandated Rothschild and Deutsche Bank to assess strategic options for GVT last August.
DirecTV is has been seen as a front runner for some time as it seeks to build on the success of its Latin American operations. The US satellite broadcaster already has operations in the country through a 93% stake in Sky Brasil.
Other telcos such as America Movil, Liberty Global and Telecom Italia were all previously linked to GVT around the time of the first round bids at the end of 2012. At the time Vivendi was reportedly only taking two of the bids seriously.
The second round of bidding is said to end in late February.
