GVT Shareholders Vote to Kill Pill

Shareholders of GVT, the Brazilian telecom that is the object of a bidding war between France’s Vivendi and Telesp, will vote today to waive a poison pill agreement and authorize both interested parties as bidders. The move will also establish BRL48.00 as the minimum share price at which the company can be sold. In mid-October, Telesp, which is owned by Telefonica, launched a public tender offer for GVT shares at BRL48.00, topping a September verbal bid from Vivendi’s of BRL42.00. Any new offer for GVT must be made at least 5% above the previous, according to Brazilian law, which means interested parties telecom will have to pay a minimum BRL50.40. GVT shares closed Monday at BRL50.40, suggesting investors are betting on a new deal from Vivendi or another bidder. GVT’s main investors include a control block called Global Village Telecom, with 18.0% of the shares, and Swarth Investments, with 8.1%. At Monday’s close GVT’s market cap stood at BRL6.48bn. The result of the vote should be released later today. GVT is advised by Barclays, Goldman Sachs and Credit Suisse, according to Dealogic. Telesp has tapped Santander and JPMorgan. Vivendi is advised by BNP and Calyon.