Telefonica Offers Cash For Brazil's GVT

MADRID (AP) — Spanish telecommunications company Telefonica SA announced Wednesday it is making a 6.5 billion reals ($3.7 billion) cash offer for Brazilian Internet and telecommunications company GVT SA.

The offer could derail a bid for GVT by Vivendi SA, the French media and entertainment company.

Telefonica said in a statement that it was offering 48 reals ($27.25) per share, well over the 42-real offer from Vivendi.

Telefonica affiliates Telesp and Vivo already represent the largest telecom force in Brazil's fast growing market. They have more than 62 million clients and 85,000 employees.

Acquiring GVT would expand Telefonica's reach beyond Sao Paulo state.