Viva la Vivo, A Brazilian Wireless Growth OpportunityValulicious • Oct. 15, 2007
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Wed, Oct. 1, 7:04 PM
- With carriers turning cautious amid slowing subscriber growth and intense price pressure, R$5.8B ($2.4B) was spent during a closely-watched auction for Brazilian 4G spectrum, far less than the R$8B the government was hoping to raise.
- America Movil (NYSE:AMX) bought a chunk of the airwaves, as did Telefonica's (NYSE:TEF) Vivo (NYSE:VIV) and Telecom Italia's (NYSE:TI) TIM Participacoes (NYSE:TSU). Oi (NYSE:OIBR), looking to strengthen its balance sheet follow the Portugal Telecom deal, decided to pass.
- All 4 carriers have been the subject of M&A intrigue in recent months. Oi has reportedly been looking to merge with TIM, while TI is believed to have mulled a takeover of Oi. AMX says it's interested in partnering with Oi on a bid for TIM, and Telefonica has struck a deal to buy Brazilian wireline carrier GVT.
Fri, Sep. 19, 2:52 AM
- Vivendi (OTCPK:VIVHY) has signed a final agreement to sell its Brazilian wireline carrier GVT to Telefonica (NYSE:TEF) in a deal worth around €7.2B (9.3B) in cash and shares.
- Vivendi will also receive a 7.4% stake in Telefonica Brasil (NYSE:VIV), at a stock market value of €2B, and a 5.7% stake in Telecom Italia (NYSE:TI), valued at €1B as of Sept. 18.
Mon, Sep. 15, 5:38 PM
Fri, Aug. 29, 6:54 AM
Fri, Aug. 29, 2:41 AM
- Vivendi (OTCPK:VIVHY) has chosen Telefonica (NYSE:TEF) for exclusive talks over the sale of its Brazilian wireline carrier GVT, snubbing a rival bid from Telecom Italia (NYSE:TI).
- "The Telefonica offer best meets the group's strategic and financial objectives," announces Vivendi.
- Telefonica's bid is valued at €7.45B, and will merge GVT with its Brazilian mobile phone carrier subsidiary Vivo (NYSE:VIV) to create the country's biggest telecom group.
- Previously: Bids raised for Vivendi's GVT
Thu, Aug. 28, 2:52 AM
- Telefonica (NYSE:TEF) and Telecom Italia (NYSE:TI) have both launched new bids for Vivendi's (OTCPK:VIVHY) GVT, which will be examined by the latter's supervisory board today.
- Telefonica has raised its bid to €4.66B in cash and will offer Vivendi a 12% stake in Telefonica Brasil (NYSE:VIV), together totaling a value of €7.45B.
- Telecom Italia's offer represents a total enterprise value of €7B ($9.24B) and includes €1.7B in cash, a 16% stake in Telecom Italia and 15% of TIM Brasil.
- Previously: Telefonica discusses raising bid for Vivendi's GVT
Wed, Aug. 27, 11:08 AM
- Oi (OIBR +9.6%) says it has hired i-bank BTG Pactual to help it explore options for buying Telecom Italia's (TI +4.3%) TIM Participacoes (TSU +6.2%) Brazilian mobile/wireline unit. Shares of all 3 companies are rallying, as are those of Portugal Telecom (PT +6%) and Telefonica's Brazilian unit (VIV +2.4%).
- Given Oi's debt load (almost $20B) and potential antitrust concerns, many think a bid for TIM (would lower the number of Brazilian mobile carriers to 3) can only work if Oi partners with other carriers to acquire and break up TIM. America Movil (AMX +0.7%), which owns rival carrier Claro, is viewed as a potential partner.
- Oi's disclosure comes as a bidding war between TI and Telefonica (TEF +0.8%) for Vivendi-owned (OTCPK:VIVHY) Brazilian wireline carrier GVT heats up. Reuters reports TI will make a €7B ($9.2B) bid for GVT that would give Vivendi a 15%-20% stake in TI; the WSJ reports Telefonica's board is meeting today to consider upping its €6.7B ($8.8B) GVT bid.
Tue, Aug. 19, 3:26 AM
- Telecom Italia (NYSE:TI) will hold a board meeting next week to discuss its offer to acquire Vivendi's (OTCPK:VIVHY) Brazilian broadband unit GVT. The meeting will likely be held on Aug. 27.
- "Certainly nothing will happen this week," says a source.
- Previously: Telefonica upping GVT offer by bundling content deal
Mon, Aug. 18, 2:44 PM
- Reuters reports Telefonica (TEF +0.2%) will include a TV content-sharing deal as part of its offer to Vivendi (OTCPK:VIVHY) for Brazilian wireline carrier GVT. A source states the revised bid is worth €7B ($9.4B), topping Telefonica's prior €6.7B offer.
- Bloomberg has reported Telecom Italia (TI -1.8%) is willing to offer up to €7B for GVT. However, TI's offer is reportedly all-stock, whereas Telefonica is offering both cash and stock.
- In addition, analysts have noted Telefonica's Spanish pay-TV presence could appeal to Vivendi, which owns a sprawling media empire.
- Related tickers: VIV, TSU
Sun, Aug. 17, 9:00 AM
- Telecom Italia (NYSE:TI) is preparing an offer of as much as €7B ($9.4B) to outbid Telefonica (NYSE:TEF) for Vivendi's (OTCPK:VIVHY) Brazilian broadband unit GVT, Bloomberg reports.
- Previously, Telefonica offered $9B to merge GVT with its mobile and wireline subsidiary Vivo.
- If the deal goes through, Vivendi would receive a 20% stake in Telecom Italia and a share in the combined companies' Brazilian units.
Tue, Aug. 5, 2:50 PM
- Telefonica (TEF -3.1%) and Brazilian subsidiary Vivo (VIV -7.5%) are off sharply following news Telefonica has bid $9B to acquire Brazilian wireline carrier GVT from Vivendi (OTCPK:VIVHY +1.9%), with plans to merge it with Vivo's mobile and wireline ops.
- America Movil (AMX -2.5%), which had 68.8M Brazilian mobile subs and 34.5M wireline revenue-generating units at the end of Q2, is also off. As are Telecom Italia (TI -6%) and Brazilian unit TIM Participacoes (TSU -9.7%), and Oi (OIBR -6.7%) and merger partner Portugal Telecom (PT -5.1%).
- Vivendi says it will study Telefonica's bid, but insists for now that "none of its subsidiaries are for sale." The conglomerate agreed to sell French carrier SFR in April.
- A Vivo/GVT pairing could be a tougher rival for America Movil and Oi/PT, and would likely lead to a sale of Telefonica's stake in TI (as sought by Brazilian regulators). As it is, Telefonica has announced plans to cut its TI stake (currently at 14.8%) through a convertible debt offering.
- There's speculation Vivendi could take Telefonica's remaining TI stake as part of its payment for GVT, but Nomura has its doubts. "It's hard to see why, from a Vivendi shareholder's perspective, they would want to have a minority position in Telecom Italia."
Wed, Jul. 16, 7:10 PM
- Telefonica (TEF +1%) plans to sell €750M ($1B) in 3-year debt that converts into Telecom Italia (TI +3.7%) shares. The debt will carry an interest rate of 5.25%-6%.
- A source tells Reuters the offering will allow Telefonica to cut its take in TI to ~5% from a current 14.8%. Another says it could pave the way for Telefonica to fully liquidate its stake, though no decision has been made.
- The first source: "This is a way for Telefonica to sell part of its stake in Telecom Italia while ensuring against downside risk if the shares lose value in the next three years."
- The offering follows attempts by Telefonica to get TI to sell Brazilian subsidiary TIM Participacoes (TSU -0.3%), thereby strengthening its balance sheet and appeasing regulators unhappy Telefonica has both a stake in TI and control of TIM rival Vivo (VIV +0.8%). Unloading the TI stake gives Telefonica an alternate way of keeping regulators happy.
Tue, May. 20, 10:50 AM
- Telefonica Brasil (VIV -1%) discloses NII Holdings (NIHD -6.8%) has agreed to pay it at least R$1.038B ($472M) over 5 years for access to its network.
- NII soared in January after announcing a wholesale deal with Telefonica that gave it access to the carrier's Brazilian/Mexican 3G networks, amid hopes the move would help it lower capex and halt ongoing share losses.
- Shares have made fresh lows today. They edged higher last week after NII announced it lost 52K subs in Q1, and stated it has enough cash to last until early 2015.
Mon, Mar. 24, 2:33 PM
- The Brazilian government plans to sell TV airwaves in the low-frequency 700-MHz. band (good for rural areas and in-building coverage) to mobile carriers. America Movil (AMX +2.2%), Telefonica Brasil (VIV -0.2%), Oi (OIBR +5.9%), and TIM Participacoes (TSU -2%) are expected to take part.
- Analyst Luis Azevedo thinks total auction expenses could top 7B reais ($3B), after factoring costs related to moving broadcasters to other spectrum and reducing interference. Unlike past auctions, the spectrum sale doesn't come with coverage requirements.
- Bidding is expected to start in August. The auction announcement comes with TIM's future still up in the air. Telefonica's efforts to up its stake in TIM parent Telecom Italia have fueled expectations TI will sell TIM. Regulators have suggested they'd prefer TIM be sold to an outside party, rather than acquired piecemeal by its rivals.
Wed, Jan. 15, 9:58 AM
- Intel (INTC +0.9%) has been upgraded to Outperform by BMO a day after JPMorgan upgraded shares to Overweight. Both moves come ahead of tomorrow's Q4 report.
- Cirrus Logic (CRUS -3.3%) has been cut to Underperform by Pac Crest ahead of its Jan. 28 FQ3 report.
- Fortinet (FTNT +2.3%) has been upgraded to Outperform by Wedbush two days after Morgan Stanley upped shares to Overweight. Q4 results are due on Jan. 29.
- Xilinx (XLNX +2%) has been upgraded to Overweight by Barclays ahead of its Jan. 21 FQ3 report. Rivals Altera (ALTR +1.3%) and QuickLogic (QUIK +4.3%) are also trading higher.
- Telefonica Brasil (VIV +0.9%) has been upgraded to Overweight by HSBC.
- Synnex (SNX +3.3%) has been upgraded to Buy by Citi six days after posting an FQ4 beat.
- Teradyne (TER +2%) has been upgraded to Outperform by Pac Crest ahead of its Jan. 22 Q4 report. Goldman declared shares a Conviction Buy yesterday.
Mon, Jan. 13, 10:29 AM
- NII Holdings (NIHD +25.5%) has struck a deal with rival Telefonica to have wholesale voice and data access to Telefonica's Brazilian and Mexican 3G networks. NII shares are taking off, while those of Telefonica's Brazilian unit, Vivo (VIV -0.5%), are down slightly. (PR)
- The deal allows NII to significantly expand its Brazilian/Mexican 3G coverage. The carrier has been struggling to halt Mexican share losses, and blamed "more aggressive competition" in Mexico and Brazil for its Q3 ARPU drop.
VIV vs. ETF Alternatives
Telefonica Brasil SA provides fixed-line telecommunications services in the State of Sao Paulo. It offers international & interregional long-distance services, as well as multimedia communication services including text, data, & voice among others.
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