French telecom giant Vivendi to launch $2.9 billion bid for Brazil’s GVT

French media and telecom giant Vivendi is launching a friendly $2.9 billion tender offer to acquire Brazilian broadband and telecoms company GVT Holding, as it seeks to expand in emerging markets.

Paris-France-based Vivendi's bid will be at $23 per share, which would value 100 per cent GVT's equity at approximately $2.9 billion.

Vivendi said that its offer would be conditional on Vivendi acquiring a minimum of 51 per cent of GVT's fully diluted share capital.

GVT's controlling shareholders, Swarth Group and Global Village Telecom (Holland) have agreed to offer 20 per cent of the 30 per cent GVT's outstanding shares they currently own to Vivendi while retaining 10 per cent.

They have also agreed to vote in favor of the waiver of the anti-takeover mechanism provided for in GVT's by-laws, in favor of Vivendi's offer, said the French telecom giant.
Jean-Bernard Lévy, CEO of Vivendi said, ''This agreement with GVT meets a strategic objective for Vivendi to expand in fast growing economies. GVT has developed innovative and original solutions in broadband communications services and already delivered very exciting results.''

With 2008 revenues of €25.4 billion and net income of €2.7 billion, Vivendi operates in 77 countries and has about 43,000 employees.