French telecommunications company, Vivendi, may be looking down the wrong end of a US$1.7bn fine said Brazil’s regulator, CVM. Local newspaper Folha de San Paulo reported that CVM believes that Vivendi has a case to answer over alleged fraudulent…
French telecommunications company, Vivendi, may be looking down the wrong end of a US$1.7bn fine said Brazil’s regulator, CVM. Local newspaper Folha de San Paulo reported that CVM believes that Vivendi has a case to answer over alleged fraudulent practices in its acquisition of Brazilian telephone carrier and ISP, GVT.
The French company allegedly announced that it bought GVT in November 2009, before it had enough shares to do so, giving a misleading impression to other shareholders and competitors.
Spain’s Telefonica was also in the race for GVC, and was deeply aggrieved at not winning the prize. Vivendi issued a statement saying it abided by Brazilian law throughout the process that led to the purchase of GVT.
