MADRID (AP) -- Spanish telecommunications company Telefonica SA said Wednesday it is sweetening its offer for Brazilian Internet and telecommunications company GVT SA by 5.2 percent to about euro2.7 billion ($4 billion).

Telefonica is competing against a bid for GVT by Vivendi SA, the French media and entertainment company.

Telefonica said in a statement filed with Spanish stock market regulators that it is now offering 50.50 Brazilian reals per share, up from the 48 it first announced in last month.

Vivendi offered 42 reals per share in September.

Telefonica affiliates Telesp and Vivo already represent the largest telecom force in Brazil's fast growing market. They have more than 62 million clients and 85,000 employees.

Acquiring GVT would expand Telefonica's reach beyond Sao Paulo state.