Another day, another unnamed source has information to share about the battle for ownership of Brazilian broadband provider GVT.

Telefonica will increase its offer for GVT, but will not reach the €8 billion level suggested by some media outlets earlier this week, Reuters reported on Wednesday, citing a source familiar with the situation.

The telco, which submitted an offer worth €6.7 billion in early August, will seek to beat an expected €7 billion bid from Telecom Italia though, the source said. Telecom Italia has expressed interest in acquiring GVT, but has yet to make a formal offer. However, the telco's board is due to meet on Wednesday and it is expected to show its hand soon.

Last week Bloomberg reported that Telecom Italia's offer would include the transfer of a 20% stake in itself to GVT's parent company Vivendi. Reuters' source claims that the stake in question could be anywhere between 15% and 20% though.

Both Telecom Italia and Telefonica are keen to acquire GVT and merge it with their Brazilian mobile businesses, TIM and Vivo respectively. Developments in Brazil took another turn on Tuesday when local mobile operator Oi revealed that it has contracted Banco BTG Pactual to advise it on a possible acquisition of Telecom Italia's stake in TIM Brasil.

There has been little in the way of official comment from any of the main protagonists of late though, so we will have to wait and see what direction the race for GVT - and potentially TIM – takes.