DirecTV to bid for GVT?
September 21, 2012
DirecTV is considering a bid for Brazilian telecom company Global Village Telecom (GVT), according to Bloomberg. GVT is owned by the French media and telecoms conglomerate Vivendi, but the owners have plans to offload the company and have drawn up a list of interested parties which will reportedly be given access to the Brazilian asset’s financial reports. No date has been set for the submission of initial bids, but with talks said to be ‘at an early stage’, DirecTV is cited as a potential bidder. Other interest could come from the likes of Telefonica and America Movil, both of which have a significant presence in Brazil. Another international player, Telecom Italia, recently ruled itself out of contention.
According to TeleGeography’s GlobalComms Database, last month Vivendi hired the investment banking divisions of Rothschild and Deutsche Bank to review the strategic options for its Brazilian telecoms unit. The French group is reviewing GVT’s operational structure to hopefully reverse a 29 per cent decline in its share price since January last year, amid continuing rumours Vivendi could look to sell off units or break up the business entirely.