UPDATE 7-Telefonica prevails in battle for Vivendi's Brazil unit GVT

jueves 28 de agosto de 2014 15:33 GYT
 

* Telefonica wins out with higher bid than Telecom Italia

* Telefonica bid worth 7.45 bln euro in cash, shares

* Vivendi to sell last telecom business to focus on media

* GVT sale comes amid consolidation push in Brazil (Updates with Telecom Italia statement)

By Leila Abboud

PARIS, Aug 28 (Reuters) - French media company Vivendi picked Telefonica for exclusive talks over the sale of its Brazilian broadband unit GVT, spurning a rival bid from Telecom Italia.

Telefonica will fold GVT into its Brazilian mobile phone carrier Vivo to create the country's biggest telecom group. It will then use GVT's pay-TV and broadband know-how and its broad network to chase higher-value customers and keep profits growing as mobile subscriber growth slows.

Vivendi's decision deals a blow to Telecom Italia, which needed GVT to shore up its own Brazilian mobile business Tim Participações, which lacks a fixed-line network.

For Vivendi, the GVT sale caps a tumultuous two-year overhaul in which it sold three telecom businesses and its video games arm to pay down debt and focus more on media and content.   Continuación...