28-08-2014, 13:03 #1
- Data de Ingresso
- Jul 2012
[EN]There's Now A Fierce Bidding War For A Brazilian Internet Provider
There's Now A Fierce Bidding War For A Brazilian Internet Provider
Read more: http://www.businessinsider.com/r-tel...#ixzz3BhPPjgfO
MILAN (Reuters) - Telecom Italia said on Thursday it had offered to buy Vivendi's Brazilian unit GVT in a cash-and-share offer that values the broadband company 7 billion euros ($9.25 billion).
The offer, which also envisages a merger between GVT and Telecom Italia's own Brazilian unit Tim Participacoes, outbid a 6.7 billion euros offer unveiled by Spanish telecom group Telefonica on Aug. 5.
However, within minutes of Telecom Italia’s offer, Spain's Telefonica said it was raising its bid for GV to 7.45 billion euros, Bloomberg reported.
According to The Wall Street Journal, analysts expect the bidding war between Telecom Italia and Telefonica for Vivendi's GVT "to continue for some time."
A Milan-based analyst told the WSJ that he doesn't expect Vivendi to come to a decision immediately on Thursday, when its board meets to discuss all its received proposals.
(Reporting by Lisa Jucca; Editing by Gopakumar Warrier)
30-08-2014, 08:14 #2
Vivendi picks Telefonica for GVT saleVivendi has picked Telefonica for exclusive talks over the sale of its Brazilian broadband unit GVT, spurning a rival bid from Telecom Italia.
Telefonica will fold GVT into its Brazilian mobile phone carrier Vivo to create the country’s biggest telecom group. It will then use GVT’s pay-TV and broadband know-how and its broad network to chase higher-value customers and keep profits growing as mobile subscriber growth slows.
Vivendi’s decision is a blow to Telecom Italia, which needed GVT to shore up its own Brazilian mobile business Tim Participações, which lacks a fixed-line network.
For Vivendi, the GVT sale caps a turbulent two-year overhaul in which it sold three telecom businesses and its video games arm to pay down debt and focus more on media and content.
“The Telefonica offer best meets the group’s strategic and financial objectives,” said the French company.