Telefonica wins bidding offer to acquire Brazilian's Vivendi unit

Multinational telecommunications company Vivendi decided on Thursday to enter exclusive negotiations with Spain's Telefonica to sell its Brazilian unit GVT, rejecting Telecom Italia's alternative offer.

Multinational telecommunications company Vivendi decided on Thursday to enter exclusive negotiations with Spain's Telefonica to sell its Brazilian unit GVT, rejecting Telecom Italia's alternative offer.

Telefonica offered a €7.45bn enterprise value, which includes 12% of Telefonica Brasil shares and €4.663bn in cash, while Telecom Italia offered a €7bn enterprise.

Vivendi said it decided to enter negotiations with Telefonica "in light of the group's strategy and in the best interests of its shareholders".

"The Telefonica offer best meets the group's strategic and financial objectives. Vivendi begins a new phase in its development to become an integrated industrial group focused on media and content," the statement said.

JF