French media conglomerate Vivendi has received four non-binding bids of over €6bn (US$7.8bn) for its Brazilian fixed-line and broadband asset GVT, according to media reports.
The reports claim that three strategics, US-based satellite broadcaster…
French media conglomerate Vivendi has received four non-binding bids of over €6bn (US$7.8bn) for its Brazilian fixed-line and broadband asset GVT, according to media reports.
The reports claim that three strategics, US-based satellite broadcaster DirecTV, Mexican communication giant America Movil and US cable operator Liberty Global, and a consortium of unnamed private equity funds have all made preliminary bids.
However, Liberty told SatelliteFinance that the report was not true and that it had not made a bid. The cableco did not say if it might do so at a later date.
Vivendi and DirecTV declined to comment on the article while America Movil did not reply to a request for comment.
Vivendi is said to consider two of the four bids serious and is confident of a sale in Q1 next year.
Telecom Italia, whose 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, both DTH and IPTV pay-TV 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 be seeking bids valuing its subsidiary at at least €7bn.
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.