Vivendi acquires an additional 5% in GVT

7 Jan 2010

French entertainment and telecoms group Vivendi has increased its equity stake in Brazilian telco and ISP Global Village Telecom (GVT) by almost 5%, lifting its ownership to 85.7%, the firm said in a statement. Following the transaction Viviendo owns close to 118 million of GVT’s total of 137 million shares. Brazil’s securities regulator is currently reviewing Vivendi’s purchase of GVT amid accusations that the deal was unfair to minority shareholders. On 22 December CommsUpdate reported that Telefonica’s Brazilian subsidiary announced it had asked the country’s securities regulatory authorities for details concerning alleged irregularities in the takeover, and 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 bid. 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.

Brazil, Global Village Telecom (GVT), Vivendi