GVT is Brazil’s leading high-speed internet provider and the offer is thought to be a move by Telefónica to enhance its presence in the Latin American country.
Telefónica’s offer consists of a $5.3 billion payment in cash, as well as new shares to be issued in Telefónica Brazil, worth approximately 12% of the larger group.
“This is an absolutely sensible move from Telefónica,” Ralph Szymczak, analyst at Landesbank Baden-Wuerttemberg in Germany, told reporters. “They’re trying to get out of Italy and would strengthen their Brazilian business through a merger with GVT.”
The proposal expires on September 3 and Telefónica has allegedly also offered Vivendi the chance to acquire an 8.3% stake in Telecom Italia.
Despite valuing GVT at €7 billion in November 2012, the company has said that none of its subsidiaries are up for sale.
However, a statement confirmed that the Vivendi Supervisory Board would “consider the Telefónica offer at its next meeting in the best interests of its shareholders and the GVT employees”.
