Vivendi receives bids for GVT Brazilian broadband unit

Vivendi today said it has received bids for its GVT Brazilian broadband unit from Telecom Italia and Telefonica, and that the supervisory board of the company would examine the offers at a meeting today.

Telecom Italia, which values Vivendi at €7 billion, includes €1.7 billion cash, a 16-per cent stake in Telecom Italia and 21.7 per cent voting rights, and 15 per cent of TIM Brasil, Vivendi said in a statement. The offer would expire on 10 September.

The Telefonica offer represents a total enterprise value of €7.450 billion. It includes a cash component €4.663 billion and 12 per cent shares in Telefonica Brasil, of which about one-third can be exchanged at Vivendi's discretion for 5.7 per cent of the share capital and 8.3 per cent of the voting rights in Telecom Italia, Vivendi said. This offer expires on August 29, 2014.

According to Vivendi, the two offers also came with proposals for content partnerships.

On 5 August Telefonica had offered €6.7-billion for to acquire Vivendi's subsidiary GVT, inviting a €7-billion counterbid by Telecom Italia. The offer seeks a merger between GVT and Telecom Italia's own Brazilian unit, TIM Participações SA.

The two financial offers also include proposals for content partnerships.

The Vivendi Supervisory Board, which meets today, will examine the two offers in the best interests of Vivendi shareholders and GVT employees, and will decide what actions to take as a result.