January 3, 2014 / 10:00 PM / 4 years ago

EMERGING MARKETS-Brazil telecoms surge on takeover news, Mexico dips

Jan 3 (Reuters) - Brazilian stocks rose on Friday as shares
of telecommunications firms soared on a report of a potential
takeover in the sector, while equities in Mexico dipped. 
    Mexican stocks have fallen from an eight-month high while
Brazilian shares have been trading in a narrow range since
recovering from a more than three-month low hit last month. 
    * Brazil's benchmark Bovespa stock index gained 1.27
percent to 50,981.09 but ended the week down 0.6 percent.
    * Shares of Brazilian telecommunications firm TIM
Participações SA jumped 10.7 percent, the most in
more than three years, following a report that Spain's
Telefonica was readying a takeover offer with two
    * 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 Telefonica Brasil SA shares advanced
2.51 percent. Grupo Oi preferred shares soared 17.43
percent, its biggest one-day gain in more than five years.
    * In Mexico, shares of billionaire Carlos Slim's America
Movil were little changed, up 0.07 percent.
    * Mexico's IPC index slipped 0.29 percent as the
index fell for the third straight session off an eight-month
    * Mexican stocks have been supported by optimism about an
ambitious energy reform that capped a year of other major
economic legislation, while Brazil has suffered from sluggish
growth, rising inflation and concerns of a credit downgrade.
    * The IPC was dragged down Friday by a 1.69 percent loss in
miner Grupo Mexico. 
    * Others commodities firms fell around the region on Friday
as well. Brazilian iron ore miner Vale SA lost 1.57
percent and state-run oil company Petroleo Brasileiro SA
, known as Petrobras, shed 1.97 percent.
    * Less U.S. monetary stimulus and slower growth in China is
expected to hurt commodities prices this year.
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