Vivendi SA of France has shelved the sale of GVT SA, the Brazilian phone and internet company. Bids submitted for the broadband firm are well below the acceptable price of Eur7 billion to Eur8 billion. The update was provided by sources seeking to remain anonymous.
Of the many previous participants, only DirecTV has an offer reaching the floor price set by Vivendi for GVT. At Eur6 billion or US$7.9 billion, DirecTV would pay two thirds in cash and the remainder would be in paid for in shares of stock. Other buyers, such as the consortium led by KKR and Co have offered Eur5 billion while BTG Pactual Group has pulled out of the auction.
Since the offers are below the amount, Vivendi has stopped the bidding process until the offer is become realistically nearer to the seller's price. According to the source, "Vivendi is not in a rush to sell."
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