UPDATE 7-Telefonica prevails in battle for Vivendi's Brazil unit GVT
* Telefonica wins out with higher bid than Telecom Italia
* Telefonica bid worth 7.45 bln euro in cash, shares
* Vivendi to sell last telecom business to focus on media
* GVT sale comes amid consolidation push in Brazil (Updates with Telecom Italia statement)
By Leila Abboud
PARIS, Aug 28 (Reuters) - French media company Vivendi picked Telefonica for exclusive talks over the sale of its Brazilian broadband unit GVT, spurning a rival bid from Telecom Italia.
Telefonica will fold GVT into its Brazilian mobile phone carrier Vivo to create the country's biggest telecom group. It will then use GVT's pay-TV and broadband know-how and its broad network to chase higher-value customers and keep profits growing as mobile subscriber growth slows.
Vivendi's decision deals a blow to Telecom Italia, which needed GVT to shore up its own Brazilian mobile business Tim Participações, which lacks a fixed-line network.
For Vivendi, the GVT sale caps a tumultuous two-year overhaul in which it sold three telecom businesses and its video games arm to pay down debt and focus more on media and content. Continuación...