By Ruth Bender
PARIS--France's Vivendi SA (VIVEF) Thursday said it has decided
to enter into exclusive talks with Spanish telecom giant Telefónica
SA (TEF) over the sale of its Brazilian telecoms unit GVT, ditching
a rival offer from Telecom Italia Spa.
Vivendi's decision came just hours after the French media giant
received a sweetened bid from Telefónica and a rival bid by Telecom
Italia SpA.
Vivendi's board met earlier Thursday to review the two offers,
and announced its decision faster than analysts had expected.
"The Telefónica offer best meets the group's strategic and
financial objectives," Vivendi said in a statement.
Vivendi said Telefónica's offer is considered "particularly
attractive" as it generates a capital gain of more than 3 billion
euros ($3.95 billion) and allows the two companies to jointly
develop content and media projects.
Vivendi reported an 85% surge in net profit for the first half
of the year to EUR1.91 billion, boosted by gains from asset
sales.
Revenue for the first six months, however, fell 3.5% to EUR5.55
billion, dragged down by Universal Music Group.
Vivendi was initially due to report first-half earnings after
the market close.
Write to Ruth Bender at ruth.bender@wsj.com