* Government OKs bids from DirecTV and funds led by KKR
* DirecTV may sweeten $7.6 bln offer with share swap
* Funds KKR, Gavea offer less cash for partial stake
SAO PAULO, Feb 24 French media group Vivendi SA
is likely to close a deal in the coming weeks to sell a
stake in Brazilian telecoms unit GVT, after getting the
government's nod to close a deal with DirecTV or a group
of funds led by KKR & Co, newspaper Folha de S.Paulo
reported on Sunday.
Vivendi may now accept a share swap as part of a deal to get
closer to the 19 billion reais ($9.6 billion) it is asking for
GVT, Folha reported, citing unnamed executives involved in
negotiations. Final bids are expected by mid March, according to
a Vivendi executive not named in the report.
DirecTV has said it will maintain its cash offer around 15
billion reais, according to Folha, but it could sweeten its bid
with a share swap. The paper said a group of funds, including
KKR and Brazil's Gavea Investimentos, had made a smaller offer
that would leave Vivendi with a partial stake in GVT.
A spokeswoman for KKR in New York declined to comment on the
report. Efforts to reach spokesmen for Vivendi in Paris, for
DirecTV in New York and Gavea in Rio de Janeiro were
Although GVT has been a growth driver for Vivendi, the
French group has come to see funding its expansion as a burden
that cannot yet be covered by GVT's cash generation.
GVT did not respond to a request for a comment.
In a meeting with Vivendi executives in the capital
Brasilia, officials expressed their approval of a deal that
would not concentrate control of Brazil's telecom market in the
hands of its four biggest phone companies, Folha reported.
A spokesman for Brazil's communications ministry could not
be reached for a comment.