Telecom Italia confirms interest in GVT
15 August 2014 | Kavit Majithia
Telecom Italia has confirmed its interests in acquiring Vivendi’s Brazilian broadband and TV provider GVT.
There has been rumours in the market that Telecom Italia was planning to line up a bid for GVT, and it is thought any deal would also include a stipulation that would see Vivendi take a stake in the Italian operator.
According to the Wall Street Journal, Telecom Italia CEO Marco Patuano travelled to Paris to discuss the deal in Brazil and met with Vivendi chairman Vincent Bollore.
Telecom Italia said in a statement it had undertaken a review to decide “whether it may be opportune to submit an offer to Vivendi to create an industrial combination that would include integration of the Brazilian businesses of the two group”.
Spanish operator Telefónica is also interested in the deal, given its existing presence in Brazil, and if Telecom Italia enters the market, it will be in direct competition with its European counterpart.
Telefónica launched a bid worth €6.7 billion to merge GVT with its local entity Vivo. However, the bid would see Vivendi receive only €3.9 billion of the entire sum and a 12% stake in the entire entity.
Interest from both Telefónica and Telecom Italia gives Vivendi the chance to exit the Brazilian telecoms business, and focus entirely on its media business.
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