Brazil Telco GVT Takes Steps To Remove Poison-Pill Clause
October 14 2009 - 8:48AM
Dow Jones News
The board of directors of Brazilian telecommunications company
GVT Holding SA (GVTT3.BR) on Tuesday night recommended removal of a
poison-pill clause from the company's by-laws, paving the way for
approval of a takeover bid.
The recommendation must still be approved by shareholders at a
general meeting.
On Friday, Telesp, which is the local unit of Spain's Telefonica
SA (TEF.MC), requested regulatory approval for a $3.7 billion cash
bid for GVT. The offer represents 48 reals ($27.80) per share. The
bid trumped an earlier one by France's Vivendi SA (VIV.FR) of BRL42
per share.
Under the company's poison-pill rules, any takeover bid must
exceed by 25% the highest price of the company's shares in the
latest 12-month period. On Tuesday, the company's shares closed
down 0.48% at BRL47.02 in Sao Paulo.
"It is beneficial for the company's shareholders to allow
competing bids to maximize shareholder value," said the GVT board
of directors in a statement.
The company called a general meeting for Nov. 3 to decide on
removal of the poison-pill clause. GVT will publish the decision of
its shareholders on Nov. 5.
-By Rogerio Jelmayer, Dow Jones Newswires; 5511-2847-4521;
rogerio.jelmayer@dowjones.com