PARIS Aug 28 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)