Nov. 7 (Bloomberg) -- Inpar SA , a Brazilian real estate company that went public in June 2007, led gains among smaller companies on a newspaper report it may sell a stake, raising speculation the slowing economy may encourage industry mergers.

Credit Suisse Group AG is in advanced talks with possible investors and funds interested in buying part of Inpar after the shares plunged, Estado de S. Paulo reported, citing people it didn't identify that are close to the company. An announcement may come within 15 days, Estado said.

``The global credit crisis will accelerate the consolidation process among Brazilian homebuilders as sales of real estate slowed this year,'' said Leila Almeida, an analyst at Lopes Filho & Associados in Rio de Janeiro. ``The bigger companies, which are in better position in terms of liquidity, are likely to acquire those with funding problems.''

A spokesman at Inpar declined to comment.

Inpar surged 23 percent to 1.80 reais for its biggest gain since it listed. The shares have tumbled 91 percent over the past year. PDG Realty SA Empreendimentos e Participacoes jumped 13 percent to 10.44 reais. The 71-stock BM&FBovespa Small Cap index rose 2.8 percent.

Rossi Residencial SA, the third-biggest homebuilder, gained 2.2 percent to 3.73 reais. Brascan Residential Properties SA, the real estate company controlled by Canada's Brookfield Asset Management Inc., increased 2.8 percent to 2.97 reais.

Abyara Planejamento Imobiliario SA, the Brazilian real estate company that has lost 93 percent of its market value this year, yesterday said it plans to cut staff and sell stakes in projects due to the credit squeeze and lower demand. The company won't start new projects until demand for homes returns and credit availability eases, Sao Paulo-based Abyara said. The stock slid 3.3 percent to 1.45 reais.

To contact the reporters on this story: Fabio Alves in New York at falves3@bloomberg.net;

Last Updated: November 7, 2008 15:28 EST