The supervisory board of Vivendi (VIV.PA) will meet this afternoon amid speculation it could ditch its offer for Brazilian telecom company GVT GVTT.SA, a trade union source told Reuters on Wednesday.

The source did not say what was on the board's agenda but investors expect Vivendi to drop plans to buy GVT this week after Spain's Telefonica (TEF.MC) offered more money for the Brazilian telco. 

There is a meeting of the supervisory board on Wednesday afternoon, the source said, confirming earlier Reuters reports.

A spokesman for Europe's largest entertainment group was not immediately available for comment.

Separately, the chairman of Telefonica told Reuters Television on Wednesday that his company hoped to close the acquisition of GVT in about two months if no counterbid emerged. [ID:nL0204091]

By 1206 GMT, Vivendi shares were up 1.53 percent at 20.59 euros, underperforming the European media sector .SXMP.