Vivendi to Retain Share in Upcoming Sale of GVT, Folha Says

A sale of Vivendi SA’s GVT phone unit in Brazil could occur within weeks, and Vivendi will retain a direct or indirect share in the company as part of the deal, newspaper Folha de S.Paulo reported.

The prospective deal has received approval from Brazil’s government, Folha reported, without saying where it obtained the information. In order meet Vivendi’s asking price of 19 billion reais ($9.6 billion), both groups vying for GVT would ask the French company to retain a stake, Folha said, citing unidentified executives involved in the talks.

Direct TV, based in El Segundo, Calif., has bid around 15 billion reais, Folha said. Under its offer, Vivendi would become a partner in the American holding company and an indirect shareholder in GVT, the newspaper reported. A lower offer from a group of funds led by KKR & Co. and including Rio de Janeiro-based Gavea Investimentos Ltda involves Vivendi retaining a direct share in GVT, Folha said.

The Folha article contained no comment from any of the companies involved. A call to GVT from Bloomberg News wasn’t immediately answered.