Latin Day Ahead: Espirito Santo Teams Up for Brazil Olympic Bid

Banco Espirito Santo Investimento SA is positioning itself in Brazil to win contracts for the 2014 World Cup and the 2016 Olympics; Interconexion Electrica SA will create a company that may sell bonds and seek partners to help finance a highway project; Shree Renuka Sugars Ltd. plans to acquire rivals in Brazil; Emerging-market equity mutual funds attracted $1.5 billion in the week ended Oct. 7.

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Espirito Santo Teams Up in Brazil to Bid on World Cup, Olympics

Banco Espirito Santo Investimento SA is positioning itself in Brazil to win contracts for the 2014 World Cup and the 2016 Olympics, teaming up with construction companies that will bid to work on more than a dozen stadiums.

Colombia ISA to Sell Debt, Seek Partners for Highway, CEO Says

Interconexion Electrica SA, Latin America’s biggest power line operator, will create a company that may sell bonds and seek partners to help finance a 5.6 trillion peso ($3 billion) highway project through the Andes mountains, Chief Executive Officer Luis Fernando Alarcon said.

Shree Renuka Seeks Brazilian Sugar Mills for Supplies

Shree Renuka Sugars Ltd., India’s biggest refiner, plans to acquire rivals in Brazil to secure supplies as a global deficit drives prices to the highest in more than 28 years.

Emerging-Market Equity Funds Recoup 2008 Outflows Amid Rally

Emerging-market equity mutual funds attracted $1.5 billion in the week ended Oct. 7, bringing this year’s inflows to $41.5 billion, according to Citigroup Inc.

MAIN COMPANIES:

Brazil

Gol Linhas Aereas Inteligentes SA (GOLL4) (GOLL4 BS): Brazil’s second-largest air carrier and its controlling shareholders are selling 1.02 billion reais ($591 million) of new and existing stock. The Sao Paulo-based company and its investors are selling 62.2 million shares for 16.50 reais each, according to data posted on the Web site of Brazil’s securities regulator. The stock fell 4.3 percent to 17.06 reais.

Universo Online SA (UOLL4 BS): The Sao Paulo-based Internet provider said it plans to buy back up to 10 percent of preferred shares over the next year. UOL rose 2.8 percent to 8.84 reais.

Vale SA (VALE5) (VALE5 BS): The world’s biggest iron-ore producer had its share price estimate raised to $26 per American depositary receipt from $23 each at RBC Capital Markets on the outlook for increased ore sales. Vale rose 1.6 percent to 38.60 reais.

Chile

Empresas CMPC SA (CMPC) : The Chilean pulp maker that yesterday agreed to buy a unit from Fibria, the world’s biggest pulp producer, plans to sell 20 million new shares at 13,800 pesos each, it wrote in a statement posted yesterday on the Web site of Chile’s securities regulator. CMPC will present the planned $500 million offering at a meeting of shareholders today. The shares closed unchanged at 19,653 pesos.

Soc. de Inversiones Pampa Calichera SA (CALICH CC) and Soc. de Inversiones Oro Blanco SA (OROB CC): Shares in the investment companies will be auctioned at 12:30 p.m. today on the Santiago exchange. The sale includes a block of 48 million Calichera shares at 920 pesos each, another 250,000 units at 919 pesos and 500,000 at 900 pesos, according to a statement posted today on the exchange’s Web site. A block of 5.27 billion Oro Blanco shares will be offered at 7.90 pesos, it wrote. Calichera fell 1.2 percent to 870 pesos. Oro Blanco slid 0.6 percent to 8.10 pesos.

Mexico

Wal-Mart de Mexico SAB (WALMEXV MM): Latin America’s largest retailer said third-quarter profit rose 18 percent as the company attracted more customers by opening more Bodega stores. Walmex, as the Mexico City-based retailer is known, was little changed at 47.78 pesos.

LATIN AMERICAN MARKETS:

Peru: The trade surplus widened to $580 million in August from $563 million the previous month, according to the median estimate of three economists surveyed by Bloomberg News. The national statistics agency is expected to release the trade report at 8:30 a.m. New York time.

The sol rose 0.1 percent to 2.8637 per dollar.

The yield on Peru’s 8.6 percent bond maturing August 2017 fell one basis point, or 0.01 percentage point, to 4.93 percent, according to Bloomberg prices.

Other prices in Latin American markets:

Chile: The peso advanced 0.6 percent to 551 per dollar.

The yield for a basket of Chile’s 10-year peso bonds in inflation-linked currency units, called unidades de fomento, fell three basis points to 2.72 percent, according to Bloomberg composite prices.

Argentina: The peso gained 0.1 percent to 3.8313 per dollar.

The yield on the country’s inflation-linked peso bonds due in December 2033 fell 11 basis points to 11.92 percent, according to Citigroup Inc.’s local unit.

Brazil: The real climbed 0.6 percent to 1.7385 per dollar.

The yield on the zero-coupon, real-denominated bond due in January 2010 rose three basis points to 8.74 percent, according to Bloomberg prices.

Colombia: The peso jumped 1.6 percent to 1,859.50 per dollar.

The yield on Colombia’s benchmark 11 percent bonds due July 2020 fell eight basis points to 8.75 percent, according to Colombia’s stock exchange.

Mexico: The peso strengthened 1 percent to 13.2353 per dollar.

The yield on Mexico’s 10 percent bond due December 2024 fell three basis points to 8.03 percent, according to Banco Santander SA.

ECONOMIES: Peru will publish its August trade balance; Venezuela will announce its weekly basket of crude oil prices; Mexico will release its trade balance.

To contact the reporter on this story: Laura Price in London at lprice3@bloomberg.net

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

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