Vivendi Bids for GVT; Bharti, MTN Merger

123jump.com Staff
09 Sep, 2009
New York City

Telecom companies are looking to acquire companies outside of mature markets. Vivendi offered to acquire Brazil based GVT and Bharti and MTN are in advanced stages of their $24 billion merger.

[R]10:00 AM New York – Telecom companies are looking to acquire companies outside of mature markets. Vivendi offered to acquire Brazil based GVT and Bharti and MTN are in advanced stages of their $24 billion merger.[/R]

Deal making around the world accelerates as Chinese companies look for resources and telecom sector sees more merger activities.

India based Bharti and South Africa based MTN are in advanced stages of discussion to merge their operations in $24 billion bid that will have 200 million subscribers. Vivendi of France has offered to acquire the smallest cell phone carrier in Brazil. UK operations of Deutsche Telekom and France Telecom were merged as consolidation in the European market progresses.

China Targets Overseas Acquisitions

China targets international properties in a hunt for oil and minerals to meet demands of its manufacturers.

China National Petroleum Corp, the parent of PetroChina was granted $30 billion in low interest loans for international acquisitions by China Development Bank.

The five-year loan will help the company to acquire new energy assets said CNPC chairman Jiang Jiemin.

China is looking to acquire assets in Canada, Argentina, Africa and Australia.

Vivendi Bids for Brazilian Mobile Carrier

The French entertainment and telecom group Vivendi plans to acquire at least majority stake in the smallest telecom operator in Brazil.

Vivendi offered $2.9 billion for GVT for 100% stake in the company or bid 42 reais a share or $22.95. The offer is 16% premium from Tuesday’s closing price.

GVT has 2.3 million subscribers and generated revenues of $800 million in 2008.

Julius Baer Spins Off Artio Global

Artio Global Investors Inc, the asset management arm of Swiss private bank Julius Baer will be spun off in a public offering.

According to the filed registration statement with the SEC, the investment management company plans to raise as much as $699.6 million through offering of 23.4 million shares. The shares are expected to be priced between $24 and $26 a share.