Vivendi reportedly hires advisors for GVT sale
France’s Vivendi Group has reportedly hired Rothschild and Deutsche Bank AG to advise on the potential sale of its Brazilian telecoms operation GVT.
Options on the table include selling the entire company, the sale of just a stake, or an initial public offering, according to sources speaking to Bloomberg.
The move is part of a revaluation of Vivendi’s business as company chairman Jean-Rene Fourtou comes under pressure to reduce its €14 billion debt.
GVT was acquired by Vivendi for $4.18 billion in 2009, and has been an important source of revenue for the French media group. The business was estimated to be worth up to $6.4 billion by Morgan Stanley in April.
It is thought that Spanish carrier Telefónica, which Vivendi outbid for GVT in 2009, is unlikely to consider acquiring the company again, having been engaged in its own global debt reduction programme.
Vivendi is also seeking a buyer for its stake in video game company Activision Blizzard, owner of the popular World of Warcraft and Call of Duty franchises. It is rumoured that Vivendi may sell its stake to Activision after a lack of interest from other buyers, according to the news service.
GVT operates as an alternative provider of fixed-line telephone, broadband and TV services in 120 Brazilian cities.