M&A

19 November, 2009

UPDATE 2-Vivendi close to NBCU exit, eyes more emerging M&A

"We may have the oportunity to replicate the GVT model in other geographies (than Brazil)", he said.

If that was the case, proceeds from the sale of the NBCU stake could give Vivendi more headroom to stick to its policy of protecting its investment grade rating and strong dividend.

Last week, Vivendi snatched GVT from under Telefonica's (TEF.MC) nose in a dramatic and high-priced purchase. [ID:nN13479709].

Vivendi's bid values GVT at 7.2 billion reais, or about $4.8 billion against Telefonica's offer of $4 bln.

The French company, which last week said it had gained control of about 54 percent of GVT's (GVTT3.SA) capital, will fund the buyout with existing credit lines, a Paris-based spokesman told Reuters on Thursday.

"We are denying the rumor of a $4 billion bond aimed to fund the acquisition of GVT," the Vivendi spokesman said.

The Vivendi plan for a local debt sale in Brazil was reported earlier by Valor Economico newspaper.

(additional reporting by Guilermo Parra in Sao Paulo)

(Editing by Jon Loades-Carter and Sitaraman Shankar)

(Reporting by Dominique Vidalon)

Source: http://www.reuters.com