UPDATE 1-Amazon in talks with Casino over Brazil electronics chain -source

By Tatiana Bautzer

SAO PAULO, March 27 (Reuters) - Amazon.com Inc andCasino Guichard Perrachon SA are negotiating a deal inBrazil either partnering or selling the French retailer's localappliance and electronics chain, a source familiar with thetalks said on Tuesday.

The talks concerning Casino's Via Varejo chain, whichincludes one of Brazil's largest e-commerce operations and morethan 900 stores in the country, would accelerate Amazon'spreviously tepid advances into Latin America's largest market.

They come as the e-commerce giant and Casino have struck anagreement to sell groceries from the French group's upmarketMonoprix through Amazon.

The Brazil deal could be structured as a partnership in thatmodel or as an outright sale of Via Varejo, the source said.

News of the talks sent preferred shares in GPA SA, Casino'sBrazilian supermarket chain that owns Via Varejo, up 5 percentto 67.28 reais in Sao Paulo.

GPA, Via Varejo and Amazon in Brazil all declined tocomment.

GPA had put Via Varejo up for sale two years ago but thecompany attracted little interest as its then-traditionalinfrastructure kept costs stubbornly high and dragged onprofits. It has since expanded its e-commerce operations.

Units of Via Varejo, a blend of preferred and common stock,rose 4.9 percent in early morning trading in Sao Paulo, to 30.43reais.

Amazon has waded slowly into Brazil's complex and highlycompetitive online retail market, starting with e-book sales in2012, adding physical books two years later and offeringthird-party sales of electronics in October.

Reuters reported in recent month that the world's largestonline retailer has been preparing to ramp up its Brazilianpresence, courting local suppliers of appliances and electronicsand eyeing a large warehouse outside of Sao Paulo.(Reporting by Tatiana BautzerAdditional reporting by Flavia Bohone in Sao PauloWriting by Brad HaynesEditing by Daniel Flynn and Bill Trott)