France's Vivendi Studies Counteroffer For Brazil's GVT
October 19 2009 - 9:04AM
Dow Jones News
France's Vivendi SA (VIVEF, VIV.FR) is studying a new offer for
Brazilian telecommunications operator GVT Holding (GVTT3.BR),
responding to a rival bid from Spain's Telefonica (TEF, TEF.MC),
local business daily Valor Economico reported, citing people close
to the deal.
In September, Vivendi made a bid worth as much as 5.4 billion
Brazilian reals ($3.2 billion) for the alternative telecom
operator. But, two weeks ago, Telefonica responded with a bid for
BRL6.2 billion.
Vivendi will also consider forcing controlling shareholders to
honor an agreement to sell a 20% stake to the French firm, making
them key minority shareholders if the Telefonica bid is successful,
said the report.
No single group of shareholders has a majority stake in GVT.
Vivendi executives were not available for comment at the time of
publication.
Investors priced in the possibility of a new offer for GVT last
week. On Friday, the shares closed at BRL49.50, above the BRL48.00
per share offered by Telefonica.
Early Monday, GVT announced that Vivendi had completed due
diligence into the Brazilian firm.
-By Alastair Stewart, Dow Jones Newswires; 5511 2847-4520;
alastair.stewart@dowjones.com