CAISSE DE DÉPÔT, TELEFONICA IN TALKS ON BRAZIL VENTURE

Telefonica SA is in advanced talks with Canadian pension fund Caisse de dépôt et placement du Québec to form a wholesale fibre-optic broadband operator in brazil, according to people familiar with the matter. Telefonica and CdPQ are in exclusive talks and a deal could be announced as soon as this week, said the people, who asked not to be identified because the matter is private.

While talks are advanced, an agreement could still be delayed or fall apart, they said. Telefonica brasil announced late on Tuesday that it's “in advanced negotiations with a leading international financial investor” to build a wholesale fibre network. The brazilian unit and Telefonica Infra will split a 50 per cent stake in the venture, while the partner will take the other half.