Anatel, Brazil’s telecommunications agency, paved the way for the potential takeover of Internet provider GVT SA, by Spain’s Telefonica SA or French media company Vivendi SA.
Last week, Telefonica had raised its takeover bid by 5.2 per cent to 50.50 reais ($29.09) per share.
Now experts believe that Vivendi would have to raise its offer to at least 53.02 reais per share to fight away Telefonica.
Shares in GVT slipped nearly 4.4 per cent to 50.71 reais in the earlier trading.
However, Vivendi claimed Friday that it had purchased 37.9 per cent of GVT and had plans to buy another 19.6 per cent of the company.
Speaking on the issue, a market analyst said, “Vivendi is in a position where they don’t have necessarily to show their cards right now.”
Vivendi also said it would launch takeover bid for 100 per cent of GVT SA.