Brazil regulator to discuss Telefonica, GVT deal with lawyers

miércoles 25 de febrero de 2015 10:29 GYT
 

BRASILIA Feb 25 (Reuters) - The antitrust regulator reviewing Telefonica Brasil SA's takeover of Vivendi SA's Brazilian broadband unit told journalists on Wednesday that he would meet with the companies' lawyers on Thursday to discuss the deal.

The talks added to signs that antitrust watchdog Cade is making progress on the case, although Marcio de Oliveira Junior, the board member overseeing the merger, declined to say when the agency might reach a final ruling.

Telefonica reached a deal with Vivendi in September to pay 7.2 billion euros for Brazilian broadband unit GVT. Telefonica Brasil executives said on Tuesday they would hold off making forecasts for 2015 until the GVT deal got regulatory clearance.

A preliminary technical report last week suggested that Cade will approve the deal if the companies adopt measures guaranteeing competitive prices in markets served by both Telefonica and GVT.

The terms of such an accord will remain confidential until a final ruling, which then could set off more merger talks in Brazil.

Telefonica is waiting for the GVT deal to clear before it moves ahead on a possible joint offer with Oi SA and America Movil SAB to buy and split up rival wireless carrier TIM Participações SA , a person with knowledge of the talks told Reuters last month. (Reporting by Leonardo Goy; Editing by Meredith Mazzilli)