Telefonica Raises Its Bid For Brazilian Internet Provider Minutes After Telecom Italia Offers $9.25 Billion

MILAN (Reuters) - Telecom Italia said on Thursday it had offered to buy Vivendi's Brazilian unit GVT in a cash-and-share offer that values the broadband company 7 billion euros ($9.25 billion).

The offer, which also envisages a merger between GVT and Telecom Italia's own Brazilian unit Tim Participacoes, outbid a 6.7 billion euros offer unveiled by Spanish telecom group Telefonica on Aug. 5.

However, within minutes of Telecom Italia's offer, Spain's Telefonica said it was raising its bid for GV to 7.45 billion euros, Bloomberg reported.

According to The Wall Street Journal, analysts expect the bidding war between Telecom Italia and Telefonica for Vivendi's GVT "to continue for some time."

A Milan-based analyst told the WSJ that he doesn't expect Vivendi to come to a decision immediately on Thursday, when its board meets to discuss all its received proposals.

(Reporting by Lisa Jucca; Editing by Gopakumar Warrier)