Telesp to ask for details on alleged irregularities in GVT takeover

22 Dec 2009

Telefonica’s Brazilian subsidiary announced yesterday it has asked the country’s securities regulatory authorities for details concerning alleged irregularities in Vivendi of France’s takeover of local telco Global Village Telecom (GVT). Reuters reports that the firm last Friday sent a letter to the head of the securities regulator CVM, requesting information on the probe which began in November – soon after Vivendi launched its surprise takeover. The CVM is understood to be investigating possible infractions on call options held by Vivendi to acquire GVT shares. Telesp apparently alleges that conflicting information from the French group and financial agents linked to the GVT offer may have prompted shareholders of the Brazilian company to sell their stock based on inaccurate assumptions.