Vivendi Says Acted In Line With Market Rules When Buying GVT
June 09 2010 - 12:23PM
Dow Jones News
French media company Vivendi SA (VIV.FR) Wednesday said that it
is confident it acted fully in line with Brazilian market
regulations when buying Brazilian telecom operator GVT last
year.
Brazilian market regulator CVM has opened an administrative
procedure against Vivendi over possible irregularities over the
purchase of GVT.
"We are fully confident that at all times we have acted fully in
line with Brazilian stockmarket regulations in acquiring GVT," a
company spokesman said.
The spokesman said that Vivendi has cooperated with the inquiry,
which opened in December last year, and is providing any
information requested.
Last November, Vivendi surprised investors by announcing that it
had guaranteed control of GVT through an agreement with the
controlling shareholders and options contracts to buy GVT stocks
from third parties. Vivendi paid 56 Brazilian reals ($29.94) a
share for GVT shares.
The company outflanked Spain's Telefonica SA (TEF) that had made
a bid of BRL50.50 for GVT shares.
CVM is investigating whether the options transaction followed
Brazilian legislation and whether Vivendi misled investors in some
way.
Media reports on Tuesday said that Vivendi could be fined up to
$1.6 billion if the CVM found any irregularities in the
purchase.
"We decline to comment on the process beyond saying that any
figures being arbitrarily thrown around are pure uninformed
fabrication," the spokesman added, referring to the media
reports.
-By Ruth Bender, Dow Jones Newswires; +33 1 40 17 17 54;
ruth.bender@dowjones.com
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