Telecom Italia (TI) is reported to be drawing up a US$9.4bn (€7bn) bid for Brazilian broadband operator GVT after it confirmed on Friday that it was examining the Vivendi asset.
Under the plan, the French media group would receive 20% of TI and a…
Telecom Italia (TI) is reported to be drawing up a US$9.4bn (€7bn) bid for Brazilian broadband operator GVT after it confirmed on Friday that it was examining the Vivendi asset.
Under the plan, the French media group would receive 20% of TI and a stake in a new unit that would hold GVT and the Italian incumbent’s local mobile operator, TIM Brasil, according to Bloomberg which cited people with knowledge of the situation.
TI is reportedly advised by Citigroup, Mediobanca and Brazilian institution Banco Bradesco.
A previous report said TI CEO Marco Patuano and Vivendi chairman Vincent Bollore met in Paris last Wednesday to discuss a potential tie-up, although a formal offer from TI was not expected before the French conglomerate’s board meeting on 28 August.
The Italian telco has also reportedly suggested it could help distribute Vivendi’s media content in Italy and Brazil as an added sweetener.
An offer could start a bidding war with Telefonica, which tabled a US$9bn (€6.7bn) proposal – comprising US$5.3bn in cash and 12% of its Brazilian mobile operator Vivo – earlier this month. Telefonica also offered Vivendi the right to acquire its 8.3% stake in TI for a fixed price once the deal has closed.
Vivendi acquired GVT in 2009, outbidding Telefonica, but moved to sell it in 2012, only to suspend the process in March 2013 as no bidder was prepared to meet its asking price of €7bn.
Vivendi is in the process of moving away from the telecoms sector after selling its majority stake in Maroc Telecom earlier this year and agreeing to part with French mobile operator SFR. GVT is its last remaining telecoms asset.
