9:45 AM -- Telefónica SA (NYSE: TEF) can expect to field some searching questions about its M&A and Latin American strategies at its investor conference today in Madrid following its decision Wednesday to bid €2.55 billion (US$3.77 billion) for Brazilian service provider GVT .

The bid is worth 48 Brazilian Reais ($27.58) per GVT share. Vivendi had already bid BR42 ($24.13) in early September. (See Vivendi Bids $2.9B for Brazilian Telco.)

Telefónica says fixed-line operator GVT, which has 2.3 million customers, would strategically complement its existing Brazilian fixed-line operation, Telecomunicacoes de Sao Paolo (Telesp), which generated revenues of €2.73 billion ($6.73 billion) during the first six months of this year from its 15.6 million voice, broadband, and pay TV customers.

Telefónica also co-owns Brazilian mobile operator Vivo Participacoes SA with Portugal Telecom SGPS SA (NYSE: PT).

Investors will likely feel well disposed towards Telefónica management's moves, as the Spanish giant today announced plans to pay shareholders a €1.40 dividend for 2010, higher than expected and better than this year's €1.15 dividend.

The carrier also told investors it expects revenues and operating income to continue to rise during the next three years.

— Ray Le Maistre, International News Editor, Light Reading