Jan. 24 (Bloomberg) -- Colombia's Stock Exchange Index had its biggest gain in almost a month led by Bavaria SA, South America's second-biggest brewer, as investors speculated the company may be sold to another beermaker.

The index rose 59.58, or 1.4 percent, to 4,409.30, with Bavaria contributing 48.2 points to the gain. It was the biggest gain for the index since Dec. 28. Elsewhere in Latin American, Brazil's Bovespa index rising 323.09, or 1.4 percent, to 24,141.46. at 2 p.m. New York time.

Trading in Bogota-based Bavaria, which is owned by Bavaria Business Group, was halted until tomorrow after the shares rose 18 percent, or 5,640 pesos, to 36,760 pesos. Chief Executive Ricardo Obregon said in an interview with El Tiempo the company would present an offer to shareholders in the event the price was $9 billion -- which compares with a market value of about $3.2 billion. Obregon denied Bavaria is for sale.

``There are a lot of investors who believe the company is for sale despite denials from the company,'' said Santiago Isaza, who covers stocks for Medellin-based brokerage Suvalor SA, which accounts for 28 percent of the volume traded on the stock market.

Bavaria shares have gained 36 percent in three days and more than doubled over the past year. The company has held talks with beer makers InBev NV and SABMiller Plc, people familiar with the situation said last week. The Colombian company also may pursue an initial share sale to boost capital, a person familiar with the plans said.

Bavaria spokeswoman Maria Clara Gracia said Obregon made the comment about price, though he reiterated the company isn't for sale.

Brazilian stocks rose led by Cia. Vale do Rio Doce, the world's largest iron-ore exporter. Vale's proposal to boost iron- ore prices 90 percent will increase expected net income and boost the company's 2005 price target by $2.5 per U.S.-traded share, Bear Stearns analyst Daniel Altman said today.

``If Vale is able to get that price increase it will be sensational for the company,'' said Debora Morsch, who helps manage about 250 million reais ($93.3 million) of equities for Solidus Administradora de Recursos SA in Porto Alegre, Brazil. ``We know there will be a good increase in ore prices because demand continues to be high, but it remains to be seen how much that will be.''

The main stock indexes in Mexico, Venezuela and Peru rose, while those in Argentina and Chile fell.

The following stocks are making significant gains or losses in Latin American markets today. Symbols are in parentheses after the company name. In Brazil, the preferred share is usually the company's most-traded class of stock.

Colombia

Bavaria SA (BAVAR CB) rose 5,640 pesos, or 18 percent, to 36,760.

Corporacion Financiera del Valle SA (CFVALL CB), Colombia's largest financial corporation, rose 50 pesos, or 3 percent, to 1,700 pesos. The share price has gained almost 5 percent so far this year.

Bancolombia SA (BCOLO CB), Colombia's biggest bank, rose 10 pesos, or 0.1 percent, to 7,930. Bancolombia has gained 32 percent since the Sept. 14 announcement it may link its business with affiliates Banco Conavi and Corfinsura.

Brazil

Cia. Paranaense de Energia (CPLE6 BS), Brazil's second- largest combined power generator and distributor, rose 64 centavos, or 5.9 percent, to 11.55 reais. Copel, as the utility is known, on Feb. 1 will reduce a discount given to consumers who pay their bills on time, effectively raising electricity rates by an average 5 percent, the company said in a statement to the Sao Paulo stock exchange.

Cia. Vale do Rio Doce (VALE5 BS) rose 2.11 reais, or 3.2 percent, to 69.11 reais. Vale's proposal to boost iron-ore prices 90 percent may boost the company's 2005 price target by $2.5 per U.S.-traded share, Bear Stearns's Altman said.

Caemi Mineracao e Metalurgia SA (CMET4 BS), a unit of Vale, rose 8 centavos, or 3.3 percent, to 2.52 reais. Bear Stearns estimates iron-ore price increases may help boost Caemi's net income by 1 cent a share and the year-end price target by 5 cents a share, Altman said in the report.

Petroleo Brasileiro SA (PETR4 BS), the state-controlled oil company, rose 1.35 reais, or 1.5 percent, to 92.45 reais. Shares gained on optimism new oil platforms being opened this year will increase sales and profits, Morsch said.

Merrill Lynch & Co. analyst Frank McGann raised 2004 net income estimates for Petrobras, as the company is called, to $5.53 per each U.S.-traded share, from $5.24 per share. Merrill Lynch also raised Petrobras 2005 net income forecast to $7.07 per share, from $6.45 per share because of expectations for higher oil prices, McGann said in a report.

Brasil Telecom SA (BRTO4 BS), Brazil's third biggest phone company, fell 13 centavos, or 1.2 percent, to 10.78 reais. Citigroup Inc., the world's largest bank, resolved a legal dispute that prevented it from liquidating a $651 million fund with a controlling stake in Brasil Telecom and other phone companies.

Mexico

Telefonos de Mexico SA (TELMEXL MM), the biggest fixed-line telephone company in Mexico, which is controlled by Mexican billionaire Carlos Slim, rose 26 centavos, or 1.3 percent, to 20.73 pesos. The company plans to sell $1 billion of five- and 10- year notes today for general corporate purposes, said a person familiar with the offering who declined to be identified.

To contact the reporters on this story: Elzio Barreto in Sao Paulo at ebarreto@Bloomberg.net Helen Murphy in Bogota at Ext. 224 or hmurphy1@bloomberg.net

Last Updated: January 24, 2005 14:19 EST