Brazil's GVT Cut To Equal-Weight By Morgan Stanley
October 13 2009 - 6:58AM
Dow Jones News
Morgan Stanley (MS) downgraded its recommendation of Brazilian
telecom operator GVT Holding SA (GVTT3.BR) to equal-weight from
overweight, the investment house said late Monday in a research
report for its clients.
"(We are) downgrading (GVT) following Telesp's offer to purchase
100% of GVT shares for 48 Brazilian reals ($28.00) per share,"
Morgan Stanley said. "We believe the stock price is fully valued at
current levels and we see limited upside," it added.
On Friday, Telesp, which is the local unit of Spain's Telefonica
SA (TEF.MC) requested regulatory approval for its $3.7 billion cash
bid for GVT. The bid trumped an earlier bid by France's Vivendi SA
(VIV.FR) of BRL42 per share.
On Friday, GVT's share closed up 0.85% at BRL47.25 on the Sao
Paulo Stock Exchange, the BMFBovespa. On Monday, the local market
was closed due to a national holiday.
-By Rogerio Jelmayer, Dow Jones Newswires; 5511-2847-4521;
rogerio.jelmayer@dowjones.com