EMERGING MARKETS-Brazil stocks up as telecoms firms jump

Fri Jan 3, 2014 10:20am EST

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* Brazil Bovespa gains 0.3 pct, Mexico IPC little-changed

    SAO PAULO, Jan 3 (Reuters) - Brazilian stocks rose for the
third session in four on Friday as shares of telecommunications
firms soared on a report of a potential takeover in the sector.
    Mexico's IPC index remained nearly unchanged from
Thursday's closing level, while Chile's bourse edged
higher.
    Brazil's benchmark Bovespa stock index gained 0.3
percent to 50,492.13, though remained on track for a 1.5 percent
weekly loss.
    Shares of telecommunications firm TIM Participações SA
 jumped the most in nearly three months following a
report that Spain's Telefonica was readying a takeover
offer with two rivals.
    Italian daily Il Sole 24 Ore reported on Friday that the
Spanish telecoms group was looking to set up a vehicle with
Mexico's America Movil and Brazil's Grupo Oi SA
 to take over TIM Participações, the Brazilian
affiliate of Telecom Italia. 
    Shares of TIM Participações rose 5.8 percent, while 
Telefonica Brasil SA shares advanced 2.8 percent.
Grupo Oi preferred shares soared 10.8 percent, with
common shares up 11.7 percent.
    "The news is positive for TIM shareholders due to the
tag-along rights," said Fábio Gonçalves, an analyst with
Banrisul Corretora in Porto Alegre, explaining that the
potential deal would allow minority shareholders to benefit by
including their shares as part of the transaction. 
    Goncalves said Oi shares soared on the prospect for less
competition in the sector as a result of the deal.
    Shares of the most widely-traded commodities firms limited
gains in the Bovespa, with iron ore miner Vale SA 
down 1.5 percent and state-run oil company Petroleo Brasileiro
SA, known as Petrobras, falling 0.6 percent.
    Mexico's IPC index remained nearly unchanged at
42,203.02 points, as a 0.5 percent decline in shares of
telecommunications firm America Movil offset a 0.7
percent rise in lender Grupo Financiero Banorte.
    Chile's IPSA index advanced 0.1 percent to 3,697.94
as shares of lender Santander Chile rose 0.8 percent.
    
    Latin America's key stock indexes at 1502 GMT:
 Stock indexes           Latest        daily %    YTD %
                                       change     change
 MSCI LatAm              3,145.08      0.26       -2
                                                  
 Brazil Bovespa          50,492.13     0.3        -1.97
                                                  
 Mexico IPC              42,203.02     0.03       -1.23
                                                  
 Chile IPSA              3,697.94      0.1        -0.03
                                                  
 Chile IGPA              18,227.41     0.08       0.00
                                                  
 Argentina MerVal        5,418.64      1.84       0.51
                                                  
 Colombia IGBC           13,098.55     -0.10      0.21
                                                  
 Peru IGRA               15,895.23     0.12       0.90
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