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LONDON, March 19 (Reuters) - Spanish telecoms firmTelefonica has lined up nine banks to run its 3 billioneuro ($3.2 billion) capital increase in connection with itspurchase of Vivendi's Brazilian unit GVT, a sourcefamiliar with the matter said on Thursday.
UBS, Morgan Stanley and JP Morgan will lead the deal, which could be announced as soon as nextweek, the source said.
BofA Merrill Lynch, Barclays and HSBC are also running the deal, as well as domestic banksBBVA, CaixaBank and Santander, thesource added.
The banks either declined to comment or were not immediatelyavailable to comment.
French media group Vivendi agreed to sell broadband businessGVT to Telefonica in September last year for a cash and sharedeal worth around 7.2 billion euros.
Telefonica said at the time that it would finance the GVTpurchase through a capital increase in its Brazilian businessand at the parent company.
Telefonica plans to fold GVT into its Vivo-branded Brazilianmobile phone business to create the country's biggest telecomgroup, Telefonica Brasil.
The deal is part of a wave of telecoms consolidation, asfirms in the sector increasingly seek to offer bundles of mobileand fixed-line services like broadband internet. ($1 = 0.9409 Euros) (Reporting By Freya Berry; additional reporting by Sarah Whiteand Jesus Aguado in Madrid; editing by Anjuli Davies and SusanThomas)