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Vivendi Picks Telefonica Over Telecom Italia for GVT Talks

Vivendi SA agreed to enter exclusive talks with Telefonica SA over the sale of its GVT unit, favoring the Spanish phone company’s mostly cash offer for the Brazilian broadband provider over a counterbid from Telecom Italia SpA.

Telefonica’s offer is “particularly attractive” because it would generate a capital gain of more than 3 billion euros ($4 billion), Paris-based Vivendi said today. Telefonica earlier increased its offer by 11 percent to 7.45 billion euros -- including 4.66 billion euros in cash -- escalating a bidding war for one of Brazil’s fastest-growing Internet carriers.