PARIS, Aug 28 (Reuters) - French media group Vivendi said it would enter into exclusive talks with Telefonica over the sale of its Brazilian broadband unit GVT, siding with the Spanish group over a rival bid from Telecom Italia.
“The Telefonica offer best meets the group’s strategic and financial objectives,” said the company in a statement.
Telefonica raised a previous 6.7 billion euro bid for GVT to 7.45 billion euros ($9.84 billion) on Thursday, increasing the cash component of the initial offer made at the start of August.
On top of the cash element, Telefonica will pay Vivendi with a 12 percent stake in the combined Brazilian entity of which about one third could be exchanged for a 5.7 percent stake in Telecom Italia if Vivendi so chose. (Reporting by Leila Abboud and Gwenaelle Barzic; Editing by Andrew Callus)