Telecom Italia considering bid for Brazil’s GVT
ITALIAN telecom giant Telecom Italia yesterday announced that it was considering all its options in Brazil, including the possibility of an acquisition that would rival its top investor, Spain’s Telefonica.
Telefonica made a surprise €26.7bn (£21.2bn) bid for Vivendi’s Brazilian broadband unit GVT. The Italian firm, meanwhile, has not ruled out the possibility of merging GVT with its own TIM Brasil to bolster its broadband base.
Brazil accounts for about one-third of Telecom Italia’s revenues. In spite of a recent economic slowdown, the market in the Latin American country continues to be its main engine for growth as Italy struggles to emerge from a long recession.
Telecom Italia chief executive Marco Patuano said he was open to all options for its Brazilian unit, including a tie-up with GVT.
However, cautioned that the heavily indebted company would not make what he termed a “crazy” acquisition there.
“We keep all options open, but we are not interested in anything that could be irrational,” said Patuano, who is carrying out a strategic review of asset sales and innovative investments.
Shares in Telecom Italia closed down 2.6 per cent at €0.8035.