Telefonica appears to be trying to take over the world.
Spain’s largest telecom provider earlier this summer was said to be vying for T-Mobile UK, and now it’s sparked a bidding war over Brazil’s GVT Holding SA.
Telefonica has authorized its Brazilian Telesp division to pay 48 Brazilian reals ($27.20) per share for GVT. The offer beats Vivendi’s Sept. 9 price of 42 Brazilian reals. Some analysts say Telefonica’s bid is too high; but the company wants to keep rival Vivendi from gaining a foothold in the South American country, and a higher price seems the best way to go about doing that.
Brazil’s communications market is exploding. The economy is growing at a rapid pace and now that Rio de Janeiro will host the 2016 Olympic Games, the time is right for service providers to expand mobile and broadband penetration.
Brazil’s population numbers almost 199 million.
