France-based Vivendi virtually emerged out of nowhere to acquire 37.9 % stake in Brazil’s GVT in a deal valued at 4.12 billion reais or $ 2.39 billion. Till now Telefonica was considered to be the front runner for the acquisition.

Vivendi also has rights to exercise irrevocable options for an additional stake of 19.6 %.

Vivendi also said it will file a mandatory tender offer of 56 reais a share for all of GVT's share capital.

Telefonica had valued the firm at $ 4 billion while Vivendi valued it at $ 4.8 billion.

The premium deal has not gone down well with investors of Vivendi.

Faced with a more costly acquisition pricetag, Vivendi was however more likely to now sell its holding in U.S media group NBCU to help fund the deal, some analysts said.

Shares of Vivendi were down 3 %.