Lex: Vivendi v Telefonica

Vivendi ended its five-year search for a large emerging market asset when the company announced it had acquired 54 per cent of GVT's capital E2.8bn ($4.2bn), trumping an improved offer from Telefónica, the Spanish telecoms group. But Vivendi's audacious move came at a price - a premium of 33 per cent on its original offer made in September - provoking disapproval from analysts who said the group's reputation for self-discipline in acquisitions had been damaged. John Paul Rathbone examines the intricacies of a complicated deal.