Vivendi is pondering a sale of its Brazilian telco GVT, according to sources familiar with the matter cited by Reuters.
The French conglomerate is looking to restructure following a 13% drop in first quarter profits and is considering a sale of GVT to…
Vivendi is pondering a sale of its Brazilian telco GVT, according to sources familiar with the matter cited by Reuters.
The French conglomerate is looking to restructure following a 13% drop in first quarter profits and is considering a sale of GVT to cut its €14bn (US$17bn) debt pile.
GVT offers fixed-line and broadband services and was acquired by Vivendi for US$2.9bn in 2009.
Reuters reports that GVT could now be worth up to €8.5bn (US$10.4bn), and suggests Telefonica, Oi, TIM Brazil and America Movil may all consider bidding.
Reports of a disposal of GVT follows an acrimonious boardroom split between chairman Jean-Rene Fourtou and the group’s former CEO Jean-Bernard Levy, who stepped down recently following differences over strategy.
Vivendi is investing €1bn (US$1.2bn) in GVT this year to expand its broadband network as the subsidiary cannot fund the investment itself. Reuters cites two unnamed sources suggesting that Fourtou considers telcos too capital intensive and risky, and that is why Vivendi is now looking to offload GVT.
Vivendi refused to comment on the report, citing company policy.
It had been suggested that Vivendi was looking to sell its 60% stake in video games publisher Activision earlier in the month, with Fourtou saying a sale of that asset was a possibility. However, Reuters reported that after sounding out potential bidders Vivendi could not achieve the price they wanted.
