Telefónica on Wednesday raised its offer for GVT, a Brazilian fixed line phone company, to €2.7bn, in an attempt to see off rival interest from Vivendi.

Spain’s leading telecoms company, which also has businesses across Latin America, increased its cash offer by 5.2 per cent to R$50.5 per GVT share. The offer values GVT’s equity at R$6.9bn, or €2.7bn.