Telecom Italia is eyeing up Vivendi’s Brazilian telecoms jewel GVT and on Monday said it was officially in the hunt for the company.
That announcement came eight days after Spain’s Telefonica made its own official bid to completely take it over.
Both of the bidders can hardly afford to lose, with mature domestic markets becoming ever-more competitive and big Brazilian investments to protect that will only be under more pressure should GVT slip away to a rival.
Indeed, Brazil accounts for 22 percent of Telefonica’s profits.
Investors are happy at the prospect of a bidding war.