NEW YORK, March 25 (Reuters) - Telefonica Brasil SA plans to raise up to $4 billion in fresh capital through a rights issue that will be announced as early as Thursday, two sources with direct knowledge of the deal told Reuters.
The sources, who requested anonymity because the deal remains private, said Spain’s Telefonica SA will subscribe $2.8 billion of the rights issue, with the rest placed with investors. Pricing of the issue is planned for April 16, the first source said, adding that Telefonica Brasil hired as many as 14 banks to handle the transaction.
Representatives at Telefonica Brasil and Telefonica in Spain declined to comment. Telefonica Brasil said on Friday it would hold a public share offering to buy the local broadband unit of Vivendi SA known as GVT. (Reporting by Guillermo Parra-Bernal; Additional reporting by Brad Haynes in Sao Paulo and Andres Gonzalez in Madrid)