Brazil's Desktop confirms talks with Claro after report on potential sale
A logo of the mobile phone network company Claro is seen in a store in Bogota, Colombia December 12, 2019. REUTERS/Luisa Gonzalez
SAO PAULO :Brazilian internet provider Desktop confirmed on Tuesday that it had held preliminary talks about a transaction with telecom operator Claro, following a media report that it could soon be acquired by Claro.
Desktop, which specializes in fiber optic internet, said in a securities filing the discussions for a "potential transaction" were non-binding and no agreement had been reached on price, structure or other key terms so far.
News outlet Brazil Journal reported earlier in the day that Claro was in "advanced talks" for a full takeover that would take Desktop private.
News of the potential acquisition sent Desktop shares surging as much as 16 per cent in Sao Paulo on Tuesday, before they settled 10 per cent higher. In contrast, Brazil's benchmark Bovespa stock index fell 1.6 per cent.
Brazil Journal reported, citing two sources, that Claro was conducting due diligence but had not yet submitted a binding offer.
Claro is owned by Mexican telecommunications firm America Movil, which declined to comment.
This is not the first time Desktop has been an acquisition target. In 2024, Claro rival Telefonica Brasil also held talks with the internet provider about a potential purchase.
Meanwhile, America Movil and Chilean firm Entel are weighing a joint offer for Telefonica's operations in Chile, they said on Monday.
