SAO PAULO (Reuters) – Brazilian internet service provider Desktop announced on Tuesday that it has engaged in initial discussions regarding a deal with telecom giant Claro, following reports suggesting a potential acquisition by Claro.
Specializing in fiber optic internet services, Desktop indicated in a securities report that these discussions concerning a “possible deal” are non-binding, and that no consensus has been achieved regarding pricing, structure, or other significant details at this stage.
Earlier, Brazil Journal reported that Claro was in “advanced negotiations” for a complete acquisition that would transition Desktop into a private entity.
The news of this prospective acquisition led to a surge in Desktop’s stock, which jumped as much as 16% in Sao Paulo on Tuesday, before closing the day with a 10% increase. In contrast, Brazil’s main stock index, Bovespa, dropped by 1.6%.
According to Brazil Journal, which cited two sources, Claro has been conducting due diligence but has yet to make a binding offer.
Claro is a subsidiary of the Mexican telecommunications company America Movil, which opted not to comment on the situation.
This isn’t the first occasion Desktop has been an acquisition focal point; in 2024, rival Telefonica Brasil also explored the possibility of purchasing the internet provider.
Meanwhile, America Movil, along with Chile’s Entel, is considering a collaborative bid for Telefonica’s assets in Chile, as reported on Monday.
(Reporting by Andre Romani; additional contributions from Luciana Magalhaes in Sao Paulo and Cassandra Garrison in Mexico City; Editing by Kylie Madry, Natalia Siniawski, and Jamie Freed)
