April 3 (Bloomberg) -- The German baby polar bear rejected by his mother has sent shares of the operator of the Berlin Zoo up 94 percent this week as investors bet ``Knut'' will become a brand name like Paddington Bear or Winnie the Pooh.

Knut, born on Dec. 5, has captivated Germany. Television news channels have documented the fluffy white cub's every move: quaffing milk from a bottle, snoozing in a hammock, snuffling up to his handler and scampering around outdoors.

His appeal was enhanced late last month when Bild-Zeitung, Germany's largest newspaper, quoted animal rights activist Frank Albrecht as saying the bear should be euthanized rather than being raised by humans. Though Knut was never in danger, schoolchildren wrote letters begging he be saved. His public debut at the zoo on March 23 attracted 400 visitors.

``With a professional brand management, Knut's brand value would certainly amount to 10 million euros ($13 million),'' said Bjoern Sander, a partner at BBDO Consulting in Dusseldorf, Germany.

Shares of Zoologischer Garten Berlin AG, a non-profit entity that doesn't pay dividends to shareholders, added 33 percent to close at 4660 euros in Berlin today. The stock, which rarely trades, has rallied 112 percent this year. Volume isn't huge: Only eight shares changed hands today.

10 Million Euros

The Berlin Zoo has lost money every year from at least 1997 to 2005, the most recent period available, according to data compiled by Bloomberg. That hasn't slowed the stock, whose price is almost four times that of Porsche AG. Porsche, which closed today at 1195 euros, is the most expensive stock among Germany's 100 largest companies.

``We have secured some licensing rights,'' Heiner Kloes, a spokesman for the zoo, said in a telephone interview. ``The question is how we can benefit from them.'' A value of 10 million euros to 13 million euros ``seems to be a little overstated to us.''

But Knut's days as an icon of cuddliness might be waning. ``Knut's value is declining day by day, as he grows up to be just another bear,'' said Bernd Michael, former chairman of Grey Global Group Europe, Middle East & Africa, who works now as a strategic adviser for the company.

Already, Knut weighs as much as 10 kilograms (22 pounds) and is about 50 centimeters to 60 centimeters (2 feet) tall. Even with his aging brand, Michael said, merchandising based on the bear could bring in as much as 100 million euros.

Bottle-Fed

Another German bear brand, the condensed-milk ``Baerenmarke'' from Muehldorf, Germany-based Allgaeuer Alpenmilch GmbH, is worth ``at least 200 million to 300 million euros,'' Michael said. ``The value is determined by how much money you would have to spend for advertising to be as widely known.''

Knut's mother, Tosca, rejected him and his twin brother hours after their birth, and zookeepers removed them from the polar bear enclosure that day. They were placed in an incubator and bottle-fed milk every two hours around the clock. The brother died from an infection fours days after his birth.

Steve Creamer, creative director at London agency Black Pig Ltd., likened Knut's potential to that of the panda logo employed by the World Wildlife Fund for nearly 50 years. He estimated that Knut could be worth as much as 15 million euros.

``The higher ethical question about whether we should consider live animals as brands is a difficult one to answer unless in some way the animals are able to benefit from the generated revenue through the conservation of their natural Habitat,'' Creamer said.

To contact the reporter on this story: Andreas Hippin in Frankfurt at ahippin@bloomberg.net.

Last Updated: April 3, 2007 11:53 EDT