Sell NBC and buy Curitiba GVC? The board of the Paris-based owner of the world’s largest music company, which met yesterday, is more preoccupied with its move to acquire GVT, said the person, who declined to be identified because the discussions are private. Vivendi’s $3 billion bid for GVT was topped last week by Telefonica SA, which offered $3.7 billion.
Yes, Vivendi is most welcome there. Sell asstets in countreis which are returning to natural size and buy on the nkids on the block. (I prefer not to use TJ's soverein term...
Vivendi Said to Hold Off on NBC, Focus on GVT (Update1)
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By Matthew Campbell
Oct. 15 (Bloomberg) -- Vivendi SA’s board held off on a decision on whether to sell its 20 percent stake in NBC Universal, focusing instead on its possible purchase of Brazil’s GVT (Holding) SA, a person familiar with the discussions said.
The board of the Paris-based owner of the world’s largest music company, which met yesterday, is more preoccupied with its move to acquire GVT, said the person, who declined to be identified because the discussions are private. Vivendi’s $3 billion bid for GVT was topped last week by Telefonica SA, which offered $3.7 billion.
The board still favors an eventual sale of the NBC stake, the person said. Vivendi Chief Executive Officer Jean-Bernard Levy has described NBC as “non-core” and is building telecommunications holdings in developing countries. General Electric Co., which owns the rest of NBC, has the right to buy out Vivendi’s stake.
Vivendi has an option to sell its stake every year between mid-November and early-December until 2016. The company obtained the NBC stake in 2004 with the sale of its media assets to GE. NBC, the operator of the broadcast network, a film studio, theme parks, and cable channels including USA, CNBC, MSNBC and Bravo, posted a 41 percent drop in second-quarter profit on lower earnings from broadcast television and its film studio.
Vivendi shares fell as much as 1.7 percent in Paris trading. They slid 31 cents, or 1.5 percent, to 20.30 euros at 11:22 a.m., giving it a market value of 25 billion euros ($37 billion).
Brazil’s GVT
Last week Telefonica, Spain’s largest phone company, offered about $700 million more for GVT, which would complement its existing operations in Brazil. Vivendi has not said whether it will counter-bid.
Telefonica, based in Madrid, offered to buy GVT for about 6.5 billion reais, or 48 reais a share, topping Vivendi’s 42- reais bid.
“As long as there is a bona fide, serious negotiation going on, you want to be part of that deal,” said Claudio Aspesi, an analyst at Sanford Bernstein in London. “But they’re doing everything exactly right. You want to keep everyone else guessing.”
Vivendi, which owns Maroc Telecom and French mobile-phone operator SFR, targeted GVT as part of its drive to expand in fast-growing emerging markets. At the time, CEO Levy said GVT would become “an essential part” of his group.
Unlike Vivendi, Telefonica is already a major operator in Brazil. Its Telesp unit has a 27.6 percent market share for fixed-line services, according to data from IHS Global Insight, a market intelligence firm. GVT has 2.5 percent of the fixed- line market. |
