Telefónica uncorked a surprise on Wednesday when it raised its bid for GVT, the Brazilian fixed-line phone company. A sweetened offer of R$50.50 per share, or $4bn, up from an initial offer of R$48 per share last month, was made without the usual prompting. On Tuesday, GVT’s board had indicated that Telefónica’s original offer price was in the ballpark. It even dropped a poison pill provision, a key step for any deal to go through.

So why raise the offer now? Telefónica wants to ensure that Vivendi, its French telecoms rival, does not get a chance at the prize. Jean-Bernard Lévy, Vivendi’s chief executive, has been eyeing GVT’s 5 per cent share of fixed-line sales in Latin America’s fastest-growing market. In September, before Telefónica’s approach, Vivendi made an informal offer at R$42 per share, subject to certain conditions, including the removal of the poison pill. The final hurdle – a nod from Anatel, Brazil’s telecoms regulator – should be cleared soon.