SAO PAULO (Reuters) -Telecom operator Claro, owned by Mexico’s America Movil, is in advanced talks to buy Brazilian internet provider Desktop, news outlet Brazil Journal reported on Tuesday, citing two sources.
The deal would involve a full takeover of Desktop, taking the Brazilian firm private, Brazil Journal said.
Claro is conducting due diligence, but has not yet made a formal bidding offer for the company, the report added.
Shares in Desktop, which is focused on providing internet through optical fiber, jumped over 16% in Sao Paulo following the news, before paring gains to trade up some 11%.
Desktop did not immediately comment on the matter. And a spokesperson for America Movil declined to comment.
Telefonica Brasil, a rival of Claro in Latin America’s largest economy, last year had talked with Desktop for a potential acquisition.
(Reporting by Andre Romani; additional reporting by Luciana Magalhaes in Sao Paulo and Cassandra Garrison in Mexico City; Editing by Kylie Madry and Natalia Siniawski)
Comments