Negotiations for Brazilian telecom operator Claro to acquire fiber internet provider Desktop have slowed amid disagreements over contractual terms and pricing, according to sources familiar with the matter.

Shares of Desktop fell more than 9% on Monday, extending their year-to-date decline to 16%. Despite the drop, the stock remains nearly 55% higher than it was before news of a potential deal surfaced on October 7.

A transaction had been expected by late January or early February, one source said, though uncertainty now clouds whether the deal will ultimately proceed. A second source described the negotiations as “on hold” pending agreement on price, while a third suggested an announcement could still come in the short term.

Desktop had a market capitalization of 1.84 billion reais (approximately $360 million) on Monday. However, one source indicated the deal was expected to value the company at more than 2 billion reais. Desktop declined to comment, and Claro did not immediately respond to requests for comment.

Claro is owned by Mexican telecommunications giant América Móvil, whose shares are up 10.6% year-to-date. América Móvil operates in more than 20 countries across Latin America, Europe, and other regions.

Desktop, which specializes in fiber optic internet services, disclosed in an October 7 securities filing that it was engaged in non-binding discussions regarding a “potential transaction,” noting that no agreement had yet been reached on price, structure, or key terms.

This is not the first time Desktop has drawn acquisition interest. In 2024, Telefônica Brasil, a rival to Claro, also held talks with the company about a possible purchase.

Topics: Brazil Telecom, M&A, Fiber Internet, América Móvil, Claro, Desktop