Telecom Italia rules out move for GVT

10 Sep 2012

According to Reuters, Telecom Italia (TI) has ruled itself out of a possible bid for Global Village Telecom (GVT), the Brazilian fixed and broadband provider owned by French media and telecoms group Vivendi. TI chief executive officer Marco Patuano told reporters that his firm does not have ‘any dossier on the table at the moment’ as far as a bid for GVT is concerned.

As reported by TeleGeography’s CommsUpdate, last month Vivendi hired the investment banking divisions of Rothschild and Deutsche Bank to review the strategic options for GVT. The French group is reviewing GVT’s operational structure to hopefully reverse a 29% decline in its share price since January last year, amid continuing rumours Vivendi could look to sell off units or break up the business entirely. Vivendi paid approximately USD4 billion for the Brazilian group in late 2009. If Vivendi does look to sell GVT it may attract interest from Telefonica of Spain or Brazilian owned Oi SA, industry watchers say.

Brazil, Global Village Telecom (GVT), Telecom Italia (TIM)