Telefonica bids EUR 2.5 B for Brazilian operator GVT

Telefonica, via its Brazilian subsidiary Telecomunicacoes de Sao Paulo (Telesp), has placed a bid to acquire Brazilian telecommunications operator GVT. Telefonica offered to buy all of GVT's shares for BRL 48 per share. Telesp estimates the overall value of the transaction will reach EUR 2.55 billion, payable in cash. Telesp's offer would be conditional on Telesp acquiring a minimum of 51 percent of GVT's fully diluted share capital, as a result of the tender offer. Telefonica's offer seeks to trump Vivendi's bid placed at the beginning of September. Vivendi launched a tender offer for GVT at BRL 42 per share, for an overall value of BRL 5.4 billion (approximately EUR 2.0 billion). A combination of Telefonica's Telesp unit and GVT "makes sense because there is a perfect geographical fit. It is a complementary business model and financially ... we could grow and generate cash", said Gilma Camurra, Telesp's investor relations director.