In a final effort to strengthen its position in the Brazilian market, Telefónica upped its offer to buy GVT from Vivendi by 11%, leading to the French group choosing the Spanish telco as the only party with which to negotiate.
Telecom Italia, which had presented an offer representing a total value of €7 billion, lost out to Telefónica which made a final offer of €7.45 billion.
In the light of the group's strategy and in the best interests of its shareholders, the supervisory board said it would to enter into exclusive negotiations with Telefonica, whose offer would generate a capital gain of more than €3 billion, while emphasising the relevance and quality of Telecom Italia's offer.
Telefonica's bid of 28 August represents a total enterprise value of €7.450 billion, including €4.66 billion in cash as well 12% in Telefónica Brasil shares of which about a third can be exchanged at Vivendi's discretion for 5.7% of the share capital and 8.3% of the voting rights in Telecom Italia.
The agreement between Telefonica and Vivendi would also allow the development of joint content and media projects. In addition, Vivendi could become a shareholder in Telecom Italia by exchanging its Brazilian shares for Italian ones.
In the light of the group's strategy and in the best interests of its shareholders, the supervisory board said it would to enter into exclusive negotiations with Telefonica, whose offer would generate a capital gain of more than €3 billion, while emphasising the relevance and quality of Telecom Italia's offer.
Telefonica's bid of 28 August represents a total enterprise value of €7.450 billion, including €4.66 billion in cash as well 12% in Telefónica Brasil shares of which about a third can be exchanged at Vivendi's discretion for 5.7% of the share capital and 8.3% of the voting rights in Telecom Italia.
The agreement between Telefonica and Vivendi would also allow the development of joint content and media projects. In addition, Vivendi could become a shareholder in Telecom Italia by exchanging its Brazilian shares for Italian ones.
