Vivendi has agreed to pay US$87 million to Brazil’s stock market regulator to settle allegations that it breached securities law when it took over GVT, a Brazilian broadband, operator in 2009. The French entertainment and telecoms group agreed the payment with the Brazilian regulator, the CVM, in settlement of claims that it had misled investors when it bought GVT.

The French group claimed that the agreement did not imply the acknowledgement of any wrongdoing by Vivendi. However, the settlement proved significantly more expensive than Vivendi had originally envisaged.

According to the French media and Telecoms Company, it had acquired 39.7% of GVT’s shares and had unconditional options to buy a further 19.6%.

As per Vivendi, it was launching a mandatory tender offer for 100% of the Brazilian operator’s capital.

The CVM alleged that to repel a rival bid, Vivendi might have breached securities rules by falsely implying to investors that it had already secured the 40% of GVT’s shares required for control.

The regulator also accused Vivendi of buying options contracts in GVT stock without giving investors, and rival bidder Telef³nica, full disclosure. Vivendi insisted that it had abided by Brazilian securities law.