Telefonica To Keep GVT Management If Bid Is Successful
October 14 2009 - 10:23AM
Dow Jones News
Spain's telecom Telefonica SA (TEF) will maintain the management
team at Brazilian telecom GVT Holding (GVTT3.BR), if its recent bid
for the alternative operator is successful, said the head of
Telefonica's local unit Wednesday.
Speaking on the sidelines of a telecom event in Sao Paulo,
Antonio Carlos Valente, chief executive at Telecommunicacoes de Sao
Paulo (TSP), or Telesp, said that Telefonica is not only bidding
for the asset but also the know-how and expertise of the management
team.
Indeed, Telefonica would keep GVT operations separate, maintain
the current GVT business plan and will look to export the model to
other countries.
"The GVT operation is extremely well run and on track. We are
buying a complete package," Valente told journalists.
Last week, Telefonica unveiled a 48 Brazilian real ($28.07) per
share bid for GVT, topping an offer by France's Vivendi. Valente
said that GVT only made its approach to GVT after it became clear
that the asset was for sale by the response to the Vivendi bid.
The offer made by Telefonica for the asset was extremely
attractive, said Valente, adding that he didn't believe it would be
topped by Vivendi or any other bidder. Telefonica will use GVT as a
platform to expand fixed-line and broadband services out of its Sao
Paulo base. However, the Spanish giant has little experience in
working as an alternative carrier.
-By Alastair Stewart, Dow Jones Newswires, 5511-8835-6968,
alastair.stewart@dowjones.com