French conglomerate Vivendi has received four non-binding bids of over €6bn (US$7.8bn) for its Brazilian fixed-line asset GVT, a media report claimed.
Reuters reported, citing sources familiar with the situation, that US satellite-broadcaster DirecTV,…
French conglomerate Vivendi has received four non-binding bids of over €6bn (US$7.8bn) for its Brazilian fixed-line asset GVT, a media report claimed.
Reuters reported, citing sources familiar with the situation, that US satellite-broadcaster DirecTV, Mexico’s America Movil and US-headquartered cableco Liberty Global have all made preliminary bids.
However, contacted by TelecomFinance Liberty denied the report, saying it had not made a bid. The cableco did not say if it might do so at a later date.
A group of undetermined private equity funds have also submitted an offer for GVT, according to the report.
Vivendi is said to consider two of the four bids serious and is confident of a sale in Q1 next year.
Vivendi and DirecTV declined to comment on the article while America Movil did not reply to a request for comment.
Telecom Italia, who’s CEO previously said the Brazilian unit was “something to look at”, did not submit a bid but may return to the process following a board meeting on December 6.
Final bids are expected by early January 2013.
GVT offers high-speed broadband, a hybrid of DTH and IPTV services, and fixed-line telephony. It generated revenues of US$1.9bn in 2011.
America Movil and DirecTV both offer pay-TV services in Brazil and a merger would create synergies for both companies.
Vivendi is advised by Deutsche Bank and Rothschild on the process and is said to expect bids of at least €7bn for the asset.
The French company is also considering options for its other telecom assets –Maroc Telecom and SFR – after it decided to focus on the media side of its business and content creation.
Vivendi reported net debt of €15bn at the end of Q3.
