Cementos Argos Cut to ‘Sell’ at Interbolsa After Asset Sale

Cementos Argos SA (CEMARGOS), Colombia’s biggest cement maker, was cut to “sell” from “buy” at Medellin-based brokerage Interbolsa SA, which cited a lower-than-expected price for the sale of its coal assets.

Cia. Vale do Rio Doce, the world’s largest iron-ore supplier, said yesterday it agreed to buy coal mines and railroad rights from Cementos Argos for about $373 million.

That compares with Interbolsa’s estimate of $666 million, analysts wrote in a note to clients today, describing the deal as a Christmas present for Rio de Janeiro-based Vale.

Cementos Argos fell 1.6 percent to 6,690 pesos in Bogota trading today. The stock probably will fall to 6,400 pesos by the end of next year, Interbolsa wrote.

To contact the reporter on this story: James Attwood in Santiago at jattwood3@bloomberg.net.

To contact the editor responsible for this story: David Papadopoulos at papadopoulos@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.