MADRID – The board of Telesp, Brazilian subsidiary of Spain’s Telefonica SA, decided to raise its offer for Brazil’s GVT by 5.2 percent to 50.5 reais ($29.20) per share.

At that higher price, the value of the bid has now risen to some 2.7 billion euros (nearly $4 billion), Telefonica told Spanish securities regulators Wednesday.

In a press release, Telefonica said the bid increase aims to “ensure the success of the offer and reinforce Telesp’s intention” to acquire 100 percent of GVT, which is controlled by Global Village Telecom (Holland) BV and Swarth Group and based in the southern city of Curitiba.

The decision came a day after GVT’s board of directors eliminated articles from its statutes that had blocked one shareholder from holding a majority stake in the company.

On Oct. 7, Telesp had submitted a tender offer of 48 reais ($27.76) per share, or roughly 2.55 billion euros ($3.7 billion) for a 100 percent stake in GVT Holding, a bid that was conditional on Telesp acquiring a minimum of 51 percent of GVT’s fully diluted share capital.

In GVT’s board meeting in Tuesday, the directors also approved the conditions for potential buyers, including one requiring that the winning suitor pay for GVT in cash at a price at least 5 percent better than Telesp’s initial offer of 48 reais per share.

France’s Vivendi SA in September offered to buy 20 percent of GVT at a price of 42 reais ($24.29) per share, although it recently said it would be willing to bid for a 100 percent stake at the same price per share.

That offer has not yet been finalized, but it would now have to be raised considerably to meet the conditions of GVT’s shareholders and top Telefonica’s bid.

Last Friday, Telefonica CEO Cesar Alierta defended Telesp’s bid as “the best for the shareholders and employees of GVT,” which, he said, is a company with an excellent team and “that is very important” for the Spanish company.

In Wednesday’s press release, Telefonica said the new offer was made after taking into account GVT’s excellent results in the third quarter, saying they confirmed its expectations regarding the company’s long-term prospects.

GVT Holding provides conventional and Internet-based telephony, corporate data, broadband, Internet and pay TV services and had approximately 2.3 million lines in service as of June 30.

Telefonica’s offer still requires the approval of telecommunications regulator Anatel. EFE