Brazil’s Desktop confirms talks with Claro after report on potential sale
Brazilian Internet Provider Desktop Confirms Preliminary Talks with Claro
SAO PAULO (Reuters) – Brazilian internet provider Desktop has confirmed that it has engaged in preliminary discussions with telecom operator Claro regarding a potential transaction. The talks, as disclosed in a securities filing, are non-binding and have not yet resulted in any agreement on price, structure, or other key terms.
According to a report by Brazil Journal, Claro is in advanced talks for a full takeover of Desktop, which specializes in fiber optic internet services. The news of a possible acquisition caused Desktop shares to surge by as much as 16% in Sao Paulo, eventually settling 10% higher. In contrast, Brazil’s benchmark Bovespa stock index experienced a 1.6% decline.
Sources cited by Brazil Journal mentioned that Claro is currently conducting due diligence but has not yet submitted a binding offer for the acquisition. Claro is a subsidiary of Mexican telecommunications company America Movil, which has refrained from commenting on the matter.
This is not the first time Desktop has attracted acquisition interest. In 2024, Claro’s rival, Telefonica Brasil, also engaged in discussions with Desktop regarding a potential purchase. Meanwhile, America Movil and Chilean firm Entel have disclosed their consideration of a joint offer for Telefonica’s operations in Chile.
(Reporting by Andre Romani; additional reporting by Luciana Magalhaes in Sao Paulo and Cassandra Garrison in Mexico City; Editing by Kylie Madry, Natalia Siniawski and Jamie Freed)
