NEW YORK (The Deal) -- Spain's Telefonica (TEF) on Tuesday offered to by Brazilian phone company GVT from French media company Vivendi for 20.1 billion reais ($8.89 billion) in a deal that could ultimately allay competition concerns in the South American country.
Telefonica said it would pay 11.9 billion reais in cash as well as a 12% stake in its enlarged Vivo Participacoes Brazilian unit for GVT, which Vivendi tried to sell last year but pulled off the block after bidders failed to meet the sticker price.
"A combination of Vivo and GVT would create the largest telecom operator in Latin America's largest market, providing a unique platform for the generation of synergies and value creation," Telefonica said.
In addition, Telefonica has offered to sell Vivendi an 8.3% stake in Telecom Italia that is left over from its unravelled Telco SpA joint venture.
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