MADRID (Reuters) – Spain’s Telefonica said on Tuesday it had presented a 6.7 billion euro (5.33 billion pounds) offer to France’s Vivendi for its Brazilian Internet provider GVT as it attempts again to beef up its presence in the Latin American country.
In a statement to the Spanish stock exchange regulator, Telefonica said its offer consisted of an 11.96 billion Brazilian reals (3.13 billion pounds) payment in cash plus new shares to be issued in Telefonica Brazil worth 12 percent of the larger group.
Brazil, where Telefonica controls the leading mobile operator Vivo, is a crucial market for the Spanish telecoms giant since it is its second largest cash generator and has growth potential unlike relatively saturated markets such as Germany and Britain.
GVT is Brazil’s leading company in high-speed Internet and connected television.
Under the offer, which would expire on Sept. 3, Telefonica would be prepared to offer Vivendi the chance to acquire an 8.3 percent stake in Telecom Italia.
In response, Vivendi said none of its subsidiaries were up for sale. “However, the Vivendi Supervisory Board will consider the Telefonica offer at its next meeting in the best interests of its shareholders and the GVT employees”.
(Reporting By Sarah Morris; additional reporting by James Regan in Paris; Editing by Sophie Walker)
Telefonica offers 6.7 billion euros for Vivendi's Brazil unit GVT
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