UPDATE 2-Telecom Italia CEO meets Vivendi's Bollore on GVT deal
(Adds details on deal under discussion)
By Gianluca Semeraro and Giselda Vagnoni
ROME/MILAN Aug 13 (Reuters) - Telecom Italia Chief Executive Marco Patuano met Vivendi chairman Vincent Bollore on Wednesday to discuss an offer for the French group's Brazilian broadband unit GVT, two sources with knowledge of the matter said.
Although no bid has yet been made, Telecom Italia is proposing to merge its Brazilian mobile business TIM Brasil with GVT, and in exchange Vivendi would take a stake in the Italian group, one of the sources said after the meeting.
In the deal structure being discussed, Telecom Italia would not launch a capital increase to finance the acquisition, the person added. It remains to be seen whether there will be a capital increase at TIM Brasil.
This counters predictions from analysts at Citigroup and other banks that a cash call would be needed to fund the acquisition of GVT. Telecom Italia has been carrying out asset disposals in Argentina and elsewhere to help fund costly network investments.
Telecom Italia, which is seeking to prevent rival bidder Telefonica from buying GVT, could put submit its offer to Vivendi by the end of the month, the person added.
Alberto Nagel, the CEO of Mediobanca, which is advising Telecom Italia, was present at the meeting which took place in Paris, said the source.
Telecom Italia and Vivendi declined to comment. Continuación...