Telefonica (TEF) is in exclusive talks to sell its Mexican operations to Beyond One, Reuters reported Friday, citing sources with knowledge of the negotiations.

The deal comes as the Spanish telecom company plans to focus on its four core markets of Brazil, Britain, Germany and Spain, while reducing exposure to Latin America due to lower profitability, according to the report.

Telefonica's Mexican business could be worth about 520 million euros ($608.9 million), Reuters said, adding that a deal was not certain.

Telefonica did not immediately respond to MT Newswires' request for comment.

Telefonica shares were down 1.3% in recent early trading.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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