Bloomberg News

Telefonica Brasil Plans to Buy Shares to Take Control of TVA

October 21, 2011

(Adds information about new cable TV rules from second paragraph.)

Oct. 21 (Bloomberg) -- Telefonica Brasil SA, the Brazilian unit of Spain’s biggest phone company, said it plans to take control of cable television operator known as TVA by buying the shares it doesn’t already own in GTR-T Participacoes & Empreendimentos SA and Lemontree Participacoes SA.

The purchase has yet to be approved by Brazil’s telecommunications regulator, known as Anatel, Telefonica Brasil said in a regulatory filing today.

The move will be possible after Brazil’s President Dilma Rousseff signed a law last month allowing foreign companies to control local cable television providers. Embratel Participacoes SA this week submitted a request to Anatel for its controlling shareholder America Movil SAB to take control of Net Servicos de Comunicacao SA.

Brazil had 11.6 million cable TV subscribers in August, according to data from Anatel. Net Servicos accounted for 40 percent of total users, while Telefonica, through TVA and its own satellite operations, accounted for 6.1 percent.

--Editor: Telma Marotto

To contact the reporters on this story: Tais Fuoco in Sao Paulo at tfuoco1@bloomberg.net; Karen Eeuwens in London at keeuwens@bloomberg.net

To contact the editor responsible for this story: Helder Marinho at hmarinho@bloomberg.net


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