By Nick Kostov
PARIS--Vivendi SA on Thursday said it's selling its remaining
stake in Telefonica's Brazilian unit GVT, a move that adds more
cash to its multi-billion euro war chest and allows the French
media conglomerate to refocus its efforts on Europe.
Vivendi made the announcement in a regulatory filing on
Thursday, in which it said it had sold its 4% stake in Telefonica
Brasil for approximately $877 million.
The move comes after Vivendi said Wednesday it had swapped a
3.5% stake in Telefonica's Brasil unit for a 0.95% stake in the
Spanish telecom firm, valued at EUR630 million ($696 million) at
Wednesday's market prices.
It completes a swift exit from Telefonica Brazil for the French
company and its chairman Vincent Bollore who had kept a 7.5% stake
after selling off its Brazilian unit GVT to Telefonica for about
EUR7.24 billion last year.
" [The ] transaction reflects the Group's intention to become
more active in Europe and to pursue strategic partnerships there,"
Vivendi said Wednesday.
Mr. Bollore has pledged to make Vivendi's units work more
closely together as the company has refashioned itself into a media
company in recent years, selling assets in videogames and
telecommunications. Its two fully owned assets at present are
French pay TV Canal Plus and U.S.-based music company Universal
Music Group.
Vivendi didn't say what it would do with the cash. The company
already has a cash pile of roughly EUR10 billion from asset sales,
prompting analysts and investors to question what the company would
do with the extra money.
Last month, Vivendi boosted its stake in Italian telecom firm
Telecom Italia to 14.9%, raising further questions about the
company's strategy.
Writet to Nick Kostov at nick.kostov@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires