Telefonica Offers $9B for Vivendi’s Brazil Unit GVT

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Aug. 5 (Bloomberg) -- Bloomberg’s Matthew Campbell examines Telefonica’s $9 billion offer for Vivendi’s GVT unit as it looks to expand into the Brazilian market and looks at other companies which may enter bidding for the unit. He speaks on “The Pulse.”

Us through the deal.

Mixed feelings on this deal seems to be the sense.

You have people at the moment.

This asset is clearly in play.

The question is, who will buy it?

They put out a short release saying they have not been soliciting buyers.

Everybody relies vivendi has been moving into telecommunications.

It was only when and what is the number?

The response was measured to say the least.

They have pretty punchy expectations of the value for this company which has grown very rapidly along with a brazilian middle class.

This story has a little bit longer to run.

What is about the structure of this deal they do not like?

Is is the price or other aspects?

Two things going on.

First the number, 6.7 billion euros.

Last year, vivendi terminated a sales process because it wanted more like 8 billion euros.

That has attracted directv from the u.s. if you take 8 billion as the benchmark, we are a long way from that and most of it will be in the shares.

Shares particularly in telefonica's brazilian unit.

Vivendi still indigo with a foot tall in brazil if they take it.

-- still ending up with a foothold in brazil if they take it.

Lighting up the phones as we speak to solicit interest and get competitive.

You think there will be others?

There will be at&t who have been long speculated to go into latin america.

We have local players.

American mobile.

They could conceivably make an offer.

There's a lot of players that can come around should telefonica's bid not be

This text has been automatically generated. It may not be 100% accurate.

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