Business

Published: Sunday November 15, 2009 MYT 7:27:00 AM
Updated: Sunday November 15, 2009 MYT 7:28:31 AM

Vivendi bids euro2.8 billion for Brazil's GVT


PARIS (AP): Vivendi SA is set to take control of Brazilian telecommunications operator GVT SA after trumping a rival offer from Spain's Telefonica SA.

The French media and entertainment giant said in a statement late Friday that it has acquired 37.9 percent of GVT's share capital from its controlling shareholders and other third parties, and has also entered into call option agreements to buy another 19.6 percent.

In total, Vivendi will control 53.7 percent of GVT, and it now plans to make an offer to remaining shareholders at 56 reals per share.

The offer values GVT at euro2.8 billion ($4.2 billion), Vivendi said, trumping Telefonica's euro2.7 billion bid made earlier this month.

Vivendi originally offered 42 reals per share for GVT in September.

In the statement, Vivendi Chief Executive Jean-Bernard Levy said "Vivendi plans to be present for the long term in Brazil ... Our aim is to further reinforce GVT's dynamism, give it a definitive shareholder and rapidly expand the company in those regions of Brazil where it currently has only a small presence."

Vivendi already owns telecommunications operators in France and Morocco.

Industry watchers have been waiting to see whether Vivendi would walk away from GVT or outbid Telefonica because of how the decision could influence a much larger choice Vivendi has to make.

Vivendi owns a 20 percent stake in US media giant NBC Universal. Starting Sunday, Vivendi can exercise an option to sell its stake in NBC Universal. General Electric Co., which owns the rest of the entertainment unit, has first right of refusal and is expected to buy that stake.

GE and US cable TV operator Comcast Corp. are negotiating a deal that would see Comcast take a 51 percent stake in NBC Universal, but the deal hinges on Vivendi's decision to divest its share.

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