Telecomunicacoes Brasileiras SA, the state-owned telecommunications company whose shares have lost more than half their value this year, rose the most since December 2008 after agreeing to share equipment with Tim Participacoes SA.
Telebras, as the company is known, soared 52 percent to 7.10 reais at the close of trading in Sao Paulo, trimming its plunge this year to 59 percent. Tim added 0.6 percent to 7.24 reais.
Tim said in a statement that it agreed to share infrastructure with Telebras to expand broadband service in Brazil in time for the 2014 World Cup soccer tournament. Telebras has posted annual losses every year since 2005, according to data compiled by Bloomberg.
“They’ve revived the corpse that was Telebras,” Pedro Galdi, chief strategist at Sao Paulo-based brokerage SLW Corretora, said by phone from Sao Paulo. “And every so often there’s a partnership that moves the stock. But we need more details about it.”