Private equity group to bid against DirectTV for GVT

31 January 2013 |


A group of private equity firms including KKR and Apax Partners are reportedly teaming up to bid against DirectTV for Vivendi’s Brazilian telecoms unit GVT.

People with knowledge of the matter told Bloomberg that the group, also including JPMorgan Chase & Co owned Gavea Investimentos and Cambuhy Investimentos, is willing to pay as much as €5 billion for the company.

This is below Vivendi’s asking price of €7 to €8 billion, according to one of the sources.

Grupo BTG Pactual is also said to be considering joining the bid for GVT, an alternative provider of fixed telephone, internet and TV services in 120 Brazilian cities

US satellite TV provider DirecTV is believed to be able to come closer to Vivendi’s asking price due to the synergies a deal would generate.

The company is particularly keen to pursue growth in Latin America as its home market begins to slow down.

The second round of bidding for GVT may be concluded by the end of February, according to one of Bloomberg’s sources.

Vivendi acquired GVT in 2009 for €3 billion, beating a bid from Telefónica.

Reuters reported in November that Vivendi had received four non-binding offers for the company.