Spanish telecoms and multimedia giant Telefonica is understood to be making another aggressive step into the Latin American market by acquiring a stake in Mexican broadcaster TV Azteca, according to Spanish press reports.

According to one report, Telefonica's media subsidiary, Telefonica Media, is also negotiating the buy-out of Peruvian cable operator Cablemagica. Another report suggests Telefonica is in talks to buy out Internet portal StarMedia, one of Telefonica subsidiary Terra's top rivals in Latin America.

Telefonica boasts a strong media presence in Argentina, where it owns cable provider Cablevision, free TV broadcasters Telefe and Azul TV, and 30% of film producer Patagonik. A deal with TV Azteca would be the Spanish conglomerate's first major move into the potent Mexican market. TV Azteca is one of Mexico's largest broadcasters, alongside Televisa and Telmex.

Telefonica declined to comment on the reports. Telefonica president Juan Villalonga has said he will float initial shares of Telefonica Media in June.