The battle for Brazilian broadband operator GVT is heating up, with Telefonica reportedly planning an addendum to its takeover offer to match the value of Telecom Italia's proposed bid.
Earlier this month Telefonica made a bid worth €6.7 billion for GVT, including 11.96 billion reais (€3.9 billion) in cash and a 12% stake in the entity that would result from combining GVT with its mobile unit Vivo. It will now offer GVT's parent company Vivendi a content-sharing deal that will take the total value of the bid to €7 billion, Reuters reported on Monday, quoting an unnamed source.
There has been no official comment from Telefonica.
The news emerged shortly after Bloomberg reported that Telecom Italia is working on a bid worth €7 billion.
The Italian telco is said to be planning an all-stock deal that would include transferring a 20% stake in itself to Vivendi, as well as an unspecified holding in a combined GVT/Tim Brasil, the latter being Telecom Italia's mobile operation in Brazil.
Securing GVT would be a boon for both Telefonica and Telecom Italia in Brazil, since both companies' local mobile units would benefit from the addition of its pay TV and fixed broadband customers and capabilities.