Telefónica Makes $9 Billion Offer for Brazilian Operator GVT


MADRID: Telefónica has submitted an offer to Vivendi to buy the Brazilian operator Global Village Telecom (GVT), which it would combine with its own Telefónica Brasil business.

Telefónica offered R$11.96 ($5.3 billion) in cash and 12 percent of the share capital in the new company created through the combination. Given the current market price of Telefónica Brasil, this offer amounts to R$20.1 billion ($8.82 billion).

Vivo, the commercial brand of Telefónica in Brazil, is the leading operator in the mobile wireless market and leading broadband services provider in the city of São Paulo. GVT is considered the most successful and fastest growing alternative operator in Brazil. The combination of the two would then create the largest telecom operator in Latin America's largest market.