Vivendi is close to a nnouncing a deal to raise its stake in Telecom Italia to just under 15%, according to various news outlets, but competition concerns mean it may well have to offload its stake in Telefonica Brasil first.
The French firm, which is acquiring an 8.3% stake in Telecom Italia as part of its sale of Brazilian broadband operator GVT to Telefonica, is reportedly looking to increase its holding in the Italian incumbent to 14.9%, and an announcement to that effect could come in the next couple of days, Reuters reported on Sunday, citing an unnamed source close to the situation.
The source expects a deal to emerge on Tuesday or Wednesday.
But Vivendi faces a potential roadblock in the form of Brazilian antitrust body CADE, which will likely force it to sell its remaining presence in the country’s telecoms market before approving an increase in its Telecom Italia holding.
When it authorised Vivendi’s €4.6 billion sale of GVT in March, CADE applied stringent conditions to prevent the French firm holding influence at two competing Brazilian telcos, Italian financial daily Il Sole 24 Ore pointed out on Monday.
Vivendi has a 12% stake in Telefonica Brasil, which operates as Vivo, while Telecom Italia owns mobile operator TIM Brasil.
Last week Bloomberg suggested that Vivendi chairman Vincent Bollore is keen to see Telecom Italia exit Brazil and will push for it to sell TIM Brasil in the next two years.
TIM Brasil has been at the centre of M&A rumours for the past couple of years. There has been talk of its Brazilian rivals mounting a joint bid and dividing its assets among them, as well as reports of a merger with local player Oi. The latter’s sale of its Portuguese operations earlier this year fuelled speculation that a deal in Brazil could be in the offing, but public ally at least the operator has yet to make a move.
