Vivendi plans €2 billion offer for Brazilian Internet and telecommunications company GVT

Vivendi to buy Brazilian telecoms operator GVT

PARIS — Vivendi SA will offer euro2 billion ($2.9 billion) to acquire Brazilian Internet and telecommunications company GVT SA, the French media and entertainment company said Wednesday.

Vivendi said GVT’s controlling shareholders Swarth Group and Global Village Telecom have agreed to sell at least 20 percent of GVT to Vivendi for 42 reals ($22.9) a share. Vivendi will launch a public tender offer for the rest of GVT’s shares by the end of the year, pending approval by the two companies’ boards and other regulatory procedures.

GVT is Brazil’s fastest-growing telecommunications service provider, Vivendi said, with annual sales growth of 31.1 percent between 2006 and 2008. GVT made sales in the year ending June 30 of about 1.5 billion Brazilian reals ($800 million) and had about 2.3 million lines in service at the end of June.

Vivendi owns France’s number two mobile telecommunications operator, SFR.