Telecom Italia (TI) is in negotiations with Vivendi that could lead to the French media firm becoming a shareholder in the Italian operator, reported Bloomberg.

Such a move would scupper a $9 billion bid made earlier this week by Telefonica for Vivendi’s fixed Brazilian provider GVT, a deal that could ease the Spanish operator’s regulatory position in Brazil’s mobile market.

In addition, Telefonica also offered Vivendi an option to buy pretty much all its existing stake in TI as part of its proposal.

Brazilian anti-trust watchdog Cade said last year that Telefonica must completely exit Tim Brasil (majority owned by TI) or get a new partner for Vivo, its mobile subsidiary, if it wants to maintain control of its own unit in Brazil.

Under one scenario, TI’s rival bid could involve Vivendi receiving shares in the Italian operator in exchange for GVT, according to sources.

TI’s bid is being presented as a broader alliance than Telefonica’s and could include the Italian operator distributing content from Vivendi, including pay-TV provider Canal Plus, over its domestic network.

Vincent Bollore, Vivendi’s largest shareholder and chairman since June, is not likely to reverse the company’s strategic shift away from telecoms and towards media.

But Bollore does want to maintain a foothold in the telecoms industry with minority stakes that would also enable Vivendi to deliver its content over partner networks. This reasoning would make TI’s offer attractive.