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Vivendi weighs options for its Brazil-based GVT subsidiary

Appoints Rothschild and Deutsche Bank to advise on possible sale
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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."

For more:
- Reuters has this article

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