GVT sale to Telefonica only likely to be cleared once Telefonica exits Telecom Italia
Telefonica, the Spanish telco, is only likely to be given clearance from antitrust regulators to acquire Brazilian fixed line telco GVT from French media group Vivendi once it exits Telecom Italia (TI). A report in Italian language daily Il Sole 24 Ore cited well informed local sources as saying that Cade, the Brazilian antitrust regulator, will only consider allowing the sale of GVT to Telefonica once the Spanish telco has fully exited from TI.
The report noted that Telefonica is presently TI's largest shareholder. TI owns TIM Brasil, the Brazilian mobile phone company, the report added.
The report added that Telefonica could find itself in the position of having to take over GVT when exclusive negotiations end in three months without having received approval from Cade. The item said that it is unlikely that Cade will have given clearance in that time, as it has not even given notice that it is examining the offer and will have up to a year from the announcement that it is looking at the dossier before it has to make any decision.
The report said that Telefonica will also need approval from Anatel, Brazil's telecom regulator.
Source Il Sole 24 Ore