Rothschild pays 500,000 reais to end Brazil probe

* Probe related to Rothschild role in Vivendi-GVT deal

* Brazilian securities regulators were investigating

By Guillermo Parra-Bernal

SAO PAULO, Nov 3 (BestGrowthStock) – Rothschild & Cie Banque has
agreed to pay 500,000 reais to settle an investigation of its
role in Vivendi’s takeover of Brazilian telecom firm GVT,
Brazilian securities regulators said.

Paris-based Rothschild agreed to pay the fine to the
regulatory agency CVM in exchange for having the probe closed,
the Rio de Janeiro-based agency said in a statement.

A spokesman for Rothschild in Paris could not be
immediately reached for comment.

The CVM had been investigating whether Rothschild, as a
non-Brazil resident institution, broke securities laws by
acquiring shares of GVT from investors on behalf of French
media company Vivendi (VIV.PA: ) last November.

In a related case, Vivendi proposed to settle a CVM probe
over alleged fraud in its 7.7 billion reais ($4.6 billion)
takeover of GVT, a source with knowledge of the situation told
Reuters last week. The source declined to disclose terms of the

Brazilian authorities are looking into whether Vivendi
misled investors, including Spanish telecom giant Telefonica
(TEF.MC: ), which was bidding for GVT at the time, by signaling
that it had won control of GVT before it actually did.

CVM wants to know if Vivendi owned less than the minimum 40
percent stake in GVT when it announced it had won control of
the Brazilian firm last November.

Simon Gillham, Vivendi’s vice president for global
communications, said in a phone interview on Monday that the
company abided by Brazilian law throughout the process that led
to the purchase of GVT. Vivendi is fully cooperating with
authorities in the process, he said.

One source familiar with the situation told Reuters the CVM
will likely decide about Vivendi’s proposal within the next two

Folha de S. Paulo newspaper reported in July that Brazilian
federal prosecutors were awaiting a CVM ruling before deciding
whether to open a probe of Vivendi on the deal.
($1=1.69 reais)
(Reporting by Guillermo Parra-Bernal; editing by John

Rothschild pays 500,000 reais to end Brazil probe