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UPDATE 2-Mexico's Desc to boost capital, Slim may step in

(Recasts, adds details throughout)

By Cyntia Barrera Diaz

MEXICO CITY, Feb 17 (Reuters)- Mexican holding company Desc said on Tuesday it will offer shareholders more stock as part of a restructuring plan to cut debt in a deal that could see magnate Carlos Slim buy a stake in the company.

Desc, a maker of autoparts, chemicals and consumer goods, said it plans to boost its capital by about $248 million by issuing about 913 million shares of common stock.

It said the proposed offer would allow shareholders to buy 2 new shares for every 3 common shares they currently hold at a price of 3 pesos each.

Shares of Desc, long out of fashion with investors because of its debt problems, surged close to 20 percent in above-average volume in the five sessions prior to the announcement. On Tuesday, Desc shares ended 2.01 percent lower at 4.88 pesos.

"Funds from the capital increase, if approved, will be used to lower the company's debt," Desc said. The company said in January it reached a deal with creditors to restructure around $720 million in debt.

The new shares would be offered only in Mexico.

Desc said it reached a deal with financial group Inbursa , owned by Slim, under which Desc will be obliged to offer Inbursa up to 2 billion pesos ($183 million) of shares at the price of 3 pesos per share if its own shareholders do not take part in the stock offer.

Desc said its chairman Fernando Senderos Mestre and his family "have said they will participate in the offer and will keep control of the company."

The proposal requires shareholder approval at a meeting in March.

Desc will also propose to convert all its Series C shares into Series B shares in a move to increase the stock liquidity. If the plan is approved, Desc's capital stock would be represented by only two series of shares, A and B.

This is not the first time that Slim's Inbursa has offered to pick up any slack in Mexican share offers.

Earlier this year, Inbursa increased its stake in Mexico's No. 1 construction firm ICA to about 24 percent from 17 percent through a deal similar to Desc's.

In the ICA deal, foreign investors were also not allowed to participate.

Desc officials declined to make further comments.