America Movil Sab De Cv Class BBMV: AMX/B

Brazil's Desktop jumps amid talks on potential sale for Claro

· Issued by America Movil Sab De Cv Class B

** Shares in Brazilian internet provider Desktop BMFBOVESPA:DESK3 jump as the company confirmed it had held preliminary talks about a transaction with telecom operator Claro

** Desktop said on Tuesday that discussions with Claro 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 that Claro, which is owned by Mexico's America Movil BMV:AMX/B, was in "advanced talks" for a full takeover that would take Desktop private

** Analysts at BTG Pactual say the deal would mark "an important step" in the consolidation recently seen in Brazil's internet service provider market

** Desktop's shares rise more than 9%, after jumping another 9% on Tuesday

** Year-to-date, Desktop is up more than 18%