Telecom Italia and Vivendi advisors to meet today to discuss sticking points in possible Tim Brasil/GVT merger
The advisors of Telecom Italia and Vivendi are to meet today, 20 August to discuss the main sticking points of a merger between TI's Brazilian mobile phone subsidiary Tim Brasil and Vivendi's Brazilian telco GVT.
An unsourced report in Il Messaggero said that TI's advisors Mediobanca and Citi will meet with Vivendi's advisors Goldman Sachs and Credit Suisse to deal with controversial issues relating to the transaction.
If the sides reach an agreement, TI's CEO Marco Patuano could conduct a new meeting with Vivendi's Chairman Vincent Bollore at the end of the week, the article added.
Patuano has outlined the details of the operation to TI's committee of independent advisors as per TI's new reinforced procedures for handling M&A, the item further noted.
The report said that if the merger does take place, Vivendi would take a 15% stake in TI as part of the deal. TI's offer values GVT at EUR 7.1bn, the article added.
An unsourced report in Il Sole 24 Ore said that TI is offering both cash and shares for GVT. The exact ratio between cash and shares has not yet been fixed, the article reported.
The item added that in terms of shares, TI would offer 10%-20% of its own stake and 20% of Tim Brasil's shares.
Source Il Messaggero, Il Sole 24 Ore