Major investment bank pulls out of bidding for GVT SA

Latin America’s largest investment bank BTG Pactual Group has withdrawn from the race to acquire Vivendi SA’s Brazilian unit GVT SA.

According to local reports, the investment bank’s decision to withdraw from the process leaves three remaining bidders for the operator, which has been up for sale since late last year.

It is thought BGT Pactual has pulled out because of the high price sought by Vivendi, ranging from €6 billion to €7 billion.

Reuters reports Vivendi has no urgency in its GVT divestment, indicating it would wait for its desired price.

GVT has reportedly served as a growth driver for Vivendi, but the company’s cash generation does not match expenditures.

Preliminary bids were also submitted by satellite provider DirecTV, a group of US private equity funds led by KKR & CO and London-based Apax partners.

Vivendi acquired GVT in late 2009 for €3 billion, outbidding Telefónica.