Spain's Telefonica made a 6.7 billion euro ($8.99 billion) bid on Tuesday to France's Vivendi for its Brazilian broadband unit GVT, seeking to strengthen Telefonica's position in a market that accounts for one-fifth of revenue.The surprise move comes after Vivendi, led by its chairman and largest shareholder Vincent Bollore, said in late June it wanted to keep its last remaining telecom asset even as it repositions itself as a media company.The French company said that none of its units were for sale but it would consider Telefonica's offer at a board meeting in late August. Analysts have speculated that Bollore would be open to shedding GVT at the right price, and say Telefonica's bid is likely to attract additional suitors for Brazil's fourth-biggest broadband provider.Telefonica, which owns Brazil's leading mobile operator Vivo, said it was offering 11.96 billion reais ($5.30 billion) in cash plus new shares of Telefonica Brasil SA worth 12 percent of the larger group.
Telefonica Brasil SA, formerly Telecomunicacoes de Sao Paulo SA - Telesp, is a Brazil-based company engaged in the telecommunications sector. Shares of VIV fell by 7.12% or $-1.45/share to $18.92. In the past year, the shares have traded as low as $17.78 and as high as $23.57. On average, 1440800 shares of VIV exchange hands on a given day and today's volume is recorded at 3229502.
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