4 November, 2009
UPDATE 1-Vivendi still eyeing GVT after poison pill move
* Vivendi still monitoring GVT situation- source
* Vivendi declines comment on GVT, NBCU
* Vivendi confident GE will be flexible on NBCU - report
* Shares up slightly, underperform French blue-chip index
(adds details, NBCU)
By Dominique Vidalon
PARIS, Nov 4 (Reuters) - French media group Vivendi, which made an offer to buy Brazilian telecommunications group GVT in September, is still monitoring the situation despite an apparent set-back to a bid, a source close to the matter told Reuters.
"We are reviewing the matter," the source said on Wednesday.
Vivendi (VIV.PA) would not comment on its plans after GVT (GVTT3.SA) shareholders on Tuesday unanimously removed a poison pill clause that was an obstacle to any takeover. But they set a minimum bid price that is above what Vivendi put on the table.
GVT is now the target of an unsolicited $3.7 billion bid by the Brazilian unit of Spain's Telefonica (TEF.MC) and a friendly $3 billion approach by Vivendi.
Both suitors had made the removal of the poison pill a precondition to their bids.
Last month, the Paris-based company cmpleted due diligence for the transaction and won approval from its board to proceed with an offer for GVT. Vivendi has yet to formalise its offer.
Vivendi, which owns Maroc Telecom (IAM.CS) and France's second-biggest mobile phone operator SFR, has targeted GVT as part of its plans to expand in fast-growing emerging markets.
On Sept. 8, Vivendi launched a tender offer for 100 percent of GVT's capital at 42 reais a share. Last month, Spain's Telefonica countered with an unsolicited offer of 48 reais, setting the stage for a potential bidding war.
Most analysts doubt that Vivendi will seek to trump Telefonica's offer. [ID:nL8138483]
Tuesday's decision scrapped two articles from GVT's statutes that had forced bidders to make a cash offer equal to 125 percent of the highest value of the company's stock price over the prior 12 months --- or about 64 reais.
GVT shareholders also approved a new minimum of at least 48 reais a share for any bid. The buyer must now pay for GVT in cash before Feb. 28, 2010.
Telefonica has said it expects regulatory approval from the Brazilian telecommunications industry watchdog Anatel before an offer, initially set for Nov. 19.
NBCU
Separately, Vivendi was tight-lipped on the situation involving its 20 percent stake in U.S. media group NBC Universal. General Electric (GE.N) owns the other 80 percent.
Sources close to the discussions have said GE was negotiating a sale of a majority stake in NBCU to cable operator Comcast (CMCSA.O) to create a powerhouse spanning TV broadcast, cable networks, movie and theme parks worth about $30 billion.
That would depend on Vivendi's selling its NBCU stake.
Each year between mid-November and mid-December, Vivendi has to decide whether to exercise its put option to sell the stake.
This year, Vivendi is eager to dispose of the stake and is in talks with GE and is determined to get good value for it, sources have said.
The New York Times reported on Monday that Comcast and GE were closer to a deal to give Comcast a 51 percent stake in NBCU and that a formal announcement may be made in the coming week. [ID:nBNG348863]
French daily La Tribune, citing an unnamed source, said on Wednesday that Vivendi seemed confident GE will become "more flexible" regarding the price it is hoping to secure for its NBCU stake.
(Reporting by Dominique Vidalon, editing by Marcel Michelson)
Source: http://www.reuters.com
UPDATE 1-Vivendi still eyeing GVT after poison pill move Added: (04.11.2009)
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