Contrary to a Reuters report, a bid for the spin-off of GVT from Vivendi SA (EPA:VIV) was not put forward by Liberty Global Inc. (NASDAQ:LBTYA) (NASDAQ:LBTYB). A spokesperson for the media company said in a statement today, “As a matter of policy, we do not comment on M&A rumours, but we can confirm that we did not table a bid for GVT.”
John Malone’s Liberty Global Inc. (NASDAQ:LBTYA) (NASDAQ:LBTYB) apparently did not compete with the other bidders, which included the satellite group, DIRECTV (NASDAQ:DTV), America Movil SAB de CV (NASDAQ:AMOV), and a group of private equity funds. The bidders offered in the range of 6 billion euros for GVT. Reuters sources reveal that all bids were less than 7 billion euros and were therefore below what Vivendi was expecting to generate from this sale.
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GVT’s network is established in 120 Brazilian cities. The company provides fixed telephone lines, TV cable, and broadband services.
Telecom Italia S.p.A. (BIT:TIT) (NYSE:TI) is also expected to place a bid after December 6, when a decision is made in the board meeting. The bidding is expected to close in January, so who knows, Liberty Global Inc. (NASDAQ:LBTYA) (NASDAQ:LBTYB) could table a bid later.
Vivendi SA (EPA:VIV) expressed intentions to sell off GVT in the third quarter. Initially the reports were that if Vivendi is unable to generate suitable bids, it will put up a public offering of shares in GVT. Rothschild and Deutsche Bank AG are brokering the bidding process for Vivendi. GVT was acquired by France’s Vivendi SA (EPA:VIV) in 2009, after a bidding race with Spain’s Telefonica. After experiencing a dip in the second quarter of this year, Vivendi’s stock is almost flat year to date.