Spanish telecommunications conglomerate Telefonica has reportedly offered $9 billion to acquire Vivendi’s operations in Brazil, reports say.
Under terms of the deal, reports say Telefonia would offer $5.3 billion in cash and shares in Telefonica’s Brazil unit Vivo. In exchange, Telefonica would acquire Vivendi’a Brazilian unit Global Village Telecom.
But the most significant portion of the transaction includes an agreement to sell rights to purchase about an 8 percent stake in Telecom Italia, currently owned by Telefonica, to Vivendi. That aspect of the merger is part of Telefonica’s efforts to comply with last December’s regulatory ruling in Brazil that ordered Telefonica to reduce its percent in the nation – the company both owns Vivo and Telecom Italia’s Brazilia unit TIM Brasil.
Telefonica’s latest offer remains subject to regulatory approval.
Full content: Telegeograhy
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