SHANGHAI - China's largest phone company is in talks with Brazil's telecom regulator on buying the mobile phone division of Oi SA.

A report by Exame magazine said China Mobile Ltd is keen to take over the telecom company, which is under bankruptcy protection.

China Mobile would not take up overdue fines the carrier owes under the deal it discussed with Agencia Nacional de Telecomunicacoes, or Anatel, Exame stated, without saying where it received the information.