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Vivendi to review Brazil's GVT
17 August 2012
Report says Vivendi hires Rothschild and Deutsche Bank to devise strategic plans for Brazilian unit GVT
French media group Vivendi has hired Rothschild and Deutsche Bank to devise strategic plans for its Brazilian subsidiary Global Village Telecom, reports Bloomberg citing two people close to the matter.
Vivendi, which owns SFR in France, bought GVT for more than $4 billion in 2009 after beating a bid from Telefónica.
The development is seen as in line with Vivendi chairman Jean-René Fourtou's plans to reorganise the company and restore investor confidence after its stock fell to a nine-year low in April 2012.
Ratings agencies Moody's and Fitch have said that Vivendi's debt rating may be cut unless it reduces liabilities.
One of the sources said Vivendi may sell the company or a stake in it, perhaps via a share flotation. According to Bloomberg Vivendi, Deutsche Bank and Rothschild all declined to comment.
Fourtou, who has been overseeing strategy former after CEO Jean-Bernard Lévy left in June, is said to be interested in reducing the group's telecommunications businesses, which he believes needs too much investment to be successful, sources had earlier said in June. GTB
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