Telefónica outbids Vivendi for Brazil's GVT

Dylan Bushell-Embling
09 Oct 2009
00:00

Spain's Telefónica has launched a takeover bid for Brazilian fixed-line operator GVT for 6.5 billion reais ($3.74 billion), outmatching an earlier offer from Vivendi.

Telefónica's 48 reais per share offer is a 14% improvement on Vivendi's bid. The French company had offered 42 reais per share - $3.0 billion in total - which was itself a 30% premium on GVT's average trading price.

GVT mainly serves corporate customers and small businesses, offering fixed-line voice and broadband services. With around 2.3 million subscribers, the company captures about 5% of the Brazilian market.

Telefónica said GVT's operations were a strong fit with its existing operations in Brazil, where it has a strong presence. The company launched the tender offer through its Brazilian subsidiary Telesp.

Telefónica already holds about 30% of Brazil's fixed-line and mobile telephony markets, FT said.

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