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Posted on November 7, 2012
By Liana B. Baker
(Reuters) – U.S. satellite provider DirecTV, which also has operations in Latin America, said on Tuesday it is in the early stages of evaluating a potential acquisition of Vivendi’s Brazilian telecom unit, GVT.
On a conference call with analysts to discuss DirecTV’s quarterly earnings, Chief Executive Mike White said the company had received pitch books from bankers about the deal.
Reuters reported in July that Vivendi was mulling a sale of the unit, which could be worth up to 8.5 billion euros ($10.42 billion).
White said that DirecTV, the No. 1 U.S. satellite TV provider, had not completed an analysis of a deal and that the process is “premature.” However, he did say that GVT could compliment DirecTV’s business in Brazil.
DirecTV owns a 93 percent stake in Brazilian Pay TV operator Sky Brasil.
“It’s (GVT) a high-growth business and it’s a very complementary business to our Brazil business. It has a pay TV business. There could be synergies as we look at that,” White said.
He added that GVT has a “nice broadband offering which could have synergies to sell a bundle that would be very strategic.”
Vivendi did not immediately respond to a request for comment on White’s remarks.
DirecTV shares closed down 15 cents at $50.51 after the company reported that it lost more subscribers than expected in the third quarter.
(Reporting by Liana B. Baker; Editing by Dan Grebler)