Telecom Italia will not bid for Vivendi's GVT subsidiary in Brazil as it prepares to reject an offer of a capital increase from Egyptian tycoon Naguib Sawiris, Il Sole 24 Ore newspaper said on Wednesday. "Telecom (Italia) has given up the idea of presenting a non-binding offer (for GVT)," the newspaper said without citing sources. The paper said it appeared that the deadline for preliminary non-binding offers for GVT had passed and a total of four had been made, all below 6 billion euros and none from telephone operators. Sources have told Reuters that Vivendi is seeking at least 7 billion euros for GVT and that Telecom Italia is one of four companies that have obtained documents on the Brazilian telecoms company. The deadline for preliminary non-binding bids is around the end of the year, the sources said. On Tuesday Sawiris told Reuters that he proposed to take a stake in Italia Telecom through a cash infusion of 3 billion euros, which would be open to all shareholders and should be conducted around the current market price of 0.70 euros per share. That price is well below the 1.50 euros per share level at which core shareholders have the stock on their books. Telecom Italia was not immediately available for comment on Wednesday about whether it is preparing to reject Sawiris's offer. Telecom Italia has been considering whether to bid for GVT, a broadband specialist in Brazil, to bolster its TIM Participacoes mobile business there, a major source of growth in recent years.
