Telefonica Brasil SA plans to raise up to $4 billion in fresh capital through a rights issue that will be announced as early as Thursday to purchase local broadband provider GVT, two sources with direct knowledge of the deal told Reuters.On Wednesday Telefonica Brasil received the go-ahead from Brazil's anti-trust watchdog Cade for the 7.2 billion euro ($7.79 billion) acquisition of local broadband unit of Vivendi SA known as GVT.Cade said the deal is dependent on certain conditions being met. These include the sale by Spanish parent company Telefonica SA of its stake in Telecom Italia, which owns rival Brazilian mobile operator Tim Participacoes SA.The sources, who requested anonymity because the deal remains private, said Spain's Telefonica SA will buy $2.8 billion of the rights issue, with the rest placed with investors. Pricing of the issue is planned for April 16, the first source said, adding that Telefonica Brasil hired as many as 14 banks to handle the transaction.
Telefonica SA is a Spain-based company active in the telecommunications and digital services sectors. Shares of TEF fell by 0.81% or $-0.12/share to $14.72. In the past year, the shares have traded as low as $13.27 and as high as $17.51. On average, 1388250 shares of TEF exchange hands on a given day and today's volume is recorded at 857189.
TIM Participacoes SA (TIM) is a Brazil-based holding company engaged in the telecommunications segment. Shares of TSU fell by 0.78% or $-0.14/share to $17.92. In the past year, the shares have traded as low as $17.45 and as high as $30.52. On average, 1115500 shares of TSU exchange hands on a given day and today's volume is recorded at 1851276.
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 1.99% or $-0.32/share to $15.74. In the past year, the shares have traded as low as $15.24 and as high as $22.50. On average, 1687790 shares of VIV exchange hands on a given day and today's volume is recorded at 1872053.