Telecom Italia (TI) is reportedly in talks with Vivendi about an agreement which could see the French media group take a significant stake in the company in exchange for its Brazilian fixed-line unit GVT.
TI CEO Marco Patuano and Vivendi chairman…
Telecom Italia (TI) is reportedly in talks with Vivendi about an agreement which could see the French media group take a significant stake in the company in exchange for its Brazilian fixed-line unit GVT.
TI CEO Marco Patuano and Vivendi chairman Vincent Bollore began discussing the potential alliance before Spain’s Telefonica, TI’s largest direct shareholder, offered to pay €6.7bn (US$9bn) for GVT earlier this week, Bloomberg reported citing two people with knowledge of the matter.
Vivendi receiving TI shares in exchange for GVT is one option put forward by the Milan-based telco, the sources were cited as saying. TI might also offer some cash and pursue a capital increase to raise funds, they reportedly added.
Telefonica’s plan to buy GVT would see Vivendi acquire the Spanish incumbent’s 8.3% stake in TI once the deal has closed.
Yesterday, Patuano said TI will assess all options for its Brazilian mobile unit TIM Brasil, but will not make “crazy offers”. He also previously commented that TI has not ruled out a merger between its own Brazilian unit and fixed-line telco GVT.
