Telecom Italia to go ahead with bid for Vivendi's GVT

martes 26 de agosto de 2014 14:37 GYT

* Bid to value GVT at roughly 7 bln euros

* Vivendi would get 15-20 pct in Telecom Italia -sources

* Would get 12 pct of new combined Brazil firm -sources

By Stefano Rebaudo, Stephen Jewkes and Pamela Barbaglia

MILAN, Aug 26 (Reuters) - Telecom Italia will make a bid valued at roughly 7 billion euros ($9.2 billion) for Vivendi's Brazilian broadband unit GVT, which would leave Vivendi with a 15 to 20 percent stake in the Italian group, said four people familiar with the matter.

Telecom Italia is competing with Spain's Telefonica for control of GVT, which sells high-end broadband and pay-TV packages to consumers in Brazil.

Telefonica, Telecom Italia's biggest shareholder, offered Vivendi around 4 billion euros in cash for GVT plus a 12 percent stake in the newly combined group.

Brazil is crucial for both Telefonica and Telecom Italia, because its market still has growth potential, especially in broadband and pay-TV, compared with the more mature market in Europe.

They already control the two largest mobile operators there, Telefonica's Vivo and Telecom Italia's Tim Brasil .   Continuación...