Vivo plans to merge all units into Global Telecom

8 May 2006

Brazil’s largest mobile operator Vivo says it will convert its Global Telecom unit into an umbrella holding for its operating units in the country, writes BNamericas citing local financial newspaper Valor Econômico. The Vivo board has reportedly approved the incorporation of 13 subsidiaries into Global Telecom, which will then be renamed Vivo SA. The move is designed to gain fiscal benefit entitlements from the state in the wake of accumulated losses of BRL3.2 billion (USD1.5 billion) in 2005. Vivo began its restructuring plan earlier this year, by merging its five stock exchange-listed units into Telesp Celular Participações. which was renamed Vivo Participações. It is company’s remaining subsidiaries and their assets and licences that will be incorporated into Global Telecom. The plan is subject to regulatory approval by Anatel.