Vivendi SA could delay the sale of Brazil's GVT SA as it receives bids lower than its asking price of 7 billion euros to 8 billion euros according to two sources close to the deal.
The auction of GVT SA, a Brazilian phone and broadband Internet firm, has two remaining bidders, the sources said. DirecTV, the largest satellite-television provider in the U.S., is bidding 6 billion euros for the broadband internet company, offering to bay two-third of that amount in cash while the remaining amount would be paid in stock.
The other bidder is KKR & Co., a consortium of buyout firms, with an offer of up to 5 billion euros, both sources revealed.
Analysts and bankers were divided on the possible decision of Vivendi, a French multinational mass media and telecommunication company. Some expect that the telecommuniation would put GVT's sale on hold until it a bidder will come up with the asking price while others anticipate Vivendi to agree to the sale.
The sale deal comes after Vivendi decides to reduce presence in the telecommunication industry to focus more on media assets.
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