TIM Participacoes (NYSE:TSU)
Historical Stock Chart

From Dec 2019 to Dec 2024

Spain's telecom Telefonica SA (TEF) will maintain the management team at Brazilian telecom GVT Holding (GVTT3.BR), if its recent bid for the alternative operator is successful, said the head of Telefonica's local unit Wednesday.

Speaking on the sidelines of a telecom event in Sao Paulo, Antonio Carlos Valente, chief executive at Telecommunicacoes de Sao Paulo (TSP), or Telesp, said that Telefonica is not only bidding for the asset but also the know-how and expertise of the management team.

Indeed, Telefonica would keep GVT operations separate, maintain the current GVT business plan and will look to export the model to other countries.

"The GVT operation is extremely well run and on track. We are buying a complete package," Valente told journalists.

Last week, Telefonica unveiled a 48 Brazilian real ($28.07) per share bid for GVT, topping an offer by France's Vivendi. Valente said that GVT only made its approach to GVT after it became clear that the asset was for sale by the response to the Vivendi bid.

The offer made by Telefonica for the asset was extremely attractive, said Valente, adding that he didn't believe it would be topped by Vivendi or any other bidder. Telefonica will use GVT as a platform to expand fixed-line and broadband services out of its Sao Paulo base. However, the Spanish giant has little experience in working as an alternative carrier.

-By Alastair Stewart, Dow Jones Newswires, 5511-8835-6968, alastair.stewart@dowjones.com