Vivendi weighs options for its Brazil-based GVT subsidiary
Vivendi (Euronext: VIV) on Friday appointed Rothschild and Deutsche Bank to advise it on what it should do with GVT, its Brazil-based telecom unit.
The France-based telecom and media conglomerate, as reported in Reuters, is examining what its next move should be to help stem the bleeding of a 29 percent decline in its share price. A number of investment banks have advised the company to either divest particular units or break the company up.
In 2009, Vivendi purchased GVT following a short bidding war with Spain's Telefonica. Analysts told Reuters that in addition to Telefonica, Group Oi and TIM Brasil could make a run for GVT should Vivendi put it up for sale.
Last month, a report emerged that it was thinking about selling the unit. A sale of GVT, which follows a failed effort to sell its Activision Blizzard (Nasdaq: ATVI) gaming unit, could be worth $10.42 billion.
At this point, none of the parties involved are talking.
Deutsche Bank and Rothschild would comment on any potential sale, while a Vivendi spokeswoman in Sao Paulo, said the company does not "comment on market speculation."
- Reuters has this article
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