Vivendi is postponing the sale of GVT, its Brazilian telecommunications unit after the French consortium failed to receive purchase offers amenable to its price. Vivendi has priced the firm at Eur7 billion or US$9.25 billion according to a report by French paper Les Echos on its website.
The source of the report was not named but Vivendi has declined to comment directly on the sale, only confirming that the company is not rushing to sell the telecommunications firm. Vivendi, amongst the French largest conglomerates with interests in media, entertainment and telecommunications, is looking to divest itself of assets as part of a plan to cut debt and reduce exposure in the highly volatile and capital intensive telecommunications market.
Other sources have told Reuters that final bids are expected to come in for GVT by March. One such source is Brazilian news daily Folha de S. Paulo, who said that the deal is expected to be finalized in the next few weeks, which helped fuel a jump in Vivendi share prices by 3.5%.
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