Telesp Eyes Local Bonds to Pay for GVT

Brazil’s Telesp is planning to issue promissory notes for as much as BRL6bn to acquire 100% of GVT, it says in a filing with the local securities regulator. In October Telesp offered BRL48 per share to acquire the telecom company, topping Vivendi’s BRL42 per share bid. Telesp says its board has authorized issuing up to 600 promissory notes worth up to BRL10m each. The expected maturity of the notes is not stated, but Telesp says it would pay 109% of the DI rate at maturity.