Spain's Telefónica has launched a takeover bid for Brazilian fixed-line operator GVT for 6.5 billion reais (€2.53 billion), outmatching an earlier offer from Vivendi.
Telefónica's 48 reais per share offer is a 14% improvement on Vivendi's bid. The French company had offered 42 reais per share - €2.04 billion in total - which was itself a 30% premium on GVT's average trading price.
GVT mainly serves corporate customers and small businesses, offering fixed-line voice and broadband services. With around 2.3 million subscribers, the company captures about 5% of the Brazilian market.
Telefónica said GVT's operations were a strong fit with its existing operations in Brazil, where it has a strong presence. The company launched the tender offer through its Brazilian subsidiary Telesp.
Telefónica already controls about 30% of Brazil's fixed-line and mobile telephony markets, FT said.