Telefónica makes €6.7 billion bid for Vivendi’s GVT

Spain’s Telefónica has offered €6.7 billion ($8.99 billion) to acquire French operator Vivendi’s Brazilian unit, GVT.

GVT is Brazil’s leading high-speed internet provider and the offer is thought to be a move by Telefónica to enhance its presence in the Latin American country.

Telefónica’s offer consists of a $5.3 billion payment in cash, as well as new shares to be issued in Telefónica Brazil, worth approximately 12% of the larger group.

“This is an absolutely sensible move from Telefónica,” Ralph Szymczak, analyst at Landesbank Baden-Wuerttemberg in Germany, told reporters. “They’re trying to get out of Italy and would strengthen their Brazilian business through a merger with GVT.”

The proposal expires on September 3 and Telefónica has allegedly also offered Vivendi the chance to acquire an 8.3% stake in Telecom Italia.

Despite valuing GVT at €7 billion in November 2012, the company has said that none of its subsidiaries are up for sale.

However, a statement confirmed that the Vivendi Supervisory Board would “consider the Telefónica offer at its next meeting in the best interests of its shareholders and the GVT employees”.

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