Banorte, JBS, Lan, Tam, Vale: Latin America Equity Preview

The following companies may have unusual price changes in Latin American trading. Stock symbols are in parentheses and share prices reflect the previous close.

The MSCI Latin America Index declined 0.3 percent to 4,537.74. Markets in Sao Paulo were closed yesterday for a holiday.

Brazil

Banco do Brasil SA (BBAS3 BS): Latin America’s largest lender by assets is studying “several” acquisitions in the region and will invest 640 million reais ($383 million) to expand in the state of Rio de Janeiro, Chief Executive Officer Aldemir Bendine said. The shares rose 0.9 percent to 31.03 reais.

HRT Participacoes em Petroleo SA (HRTP3 BS): The Brazilian oil and gas company that raised $1.4 billion in an initial offering last year is planning to list in Toronto and New York as it explores for crude from the Amazon to Africa, Chief Executive Officer Marcio Mello said in an interview. The shares climbed 4.1 percent to 1,780 reais.

JBS SA (JBSS3 BS): The world’s biggest beef producer told Sara Lee Corp. that it plans to make a takeover offer of around $21 a share, according to two people with knowledge of the matter. JBS shares gained 1.3 percent to 6.99 reais.

Kroton Educacional SA (KROT11 BS): The Brazilian administrator of private schools and colleges was rated "buy" in new coverage at Banco Santander SA. The shares gained 1.8 percent to 23.32 reais.

Petroleo Brasileiro SA (PETR4 BS): Brazil’s state-run energy producer said it discovered “high quality” oil in deep waters at an offshore field in the Santos Basin. Petrobras declined 0.2 percent to 27 reais.

Refinaria de Petroleos Manguinhos SA (RPMG4 BS): The Brazilian refiner signed a contract with Dax Oil Refino SA in order to buy the equivalent of 288,000 barrels of oil a year from mature wells in the north and northeast of Brazil, according to a regulatory filing. The shares rose 1.6 percent to 0.63 reais.

Tam SA (TAMM4 BS): Demand for flights will grow up to 18 percent this year as more Brazilians fly for the first time, the country’s biggest airline by market share forecast in a statement posted on the website of Brazil’s securities regulator. The shares gained 0.1 percent to 41.29 reais.

Vale SA (VALE5 BS): The world’s largest iron-ore miner said a tailings leak at its Voisey’s Bay nickel complex in Canada has forced the shutdown of its ore-milling operation, Bob Carter, a spokesman for Vale in the province of Newfoundland and Labrador, said in a telephone interview. The shares rose 0.4 percent to 52.74 reais.

Chile

Lan Airlines SA (LAN CC): Latin America’s largest airline by market value reported fourth-quarter profit of $164.6 million, up from $109.8 million a year earlier, according to a statement on the website of Chile’s securities regulator. The stock fell 0.2 percent to 14,727 pesos.

Colombia

Enka de Colombia SA (ENKA CB): The Medellin-based synthetic fibers maker reached an agreement to sell textiles made from recycled materials to Textiles Fabricato Tejicondor SA, according to Alvaro Hincapie, Enka’s president. Enka jumped 5.1 percent to 14.50 pesos.

Mexico

Retail: Mexico will likely create 557,000 new private sector jobs in 2011, Lorenza Martinez, a deputy economy minister, said during a steel conference in Monterrey.

Grupo Elektra SA (ELEKTRA* MM), the retail and banking company controlled by billionaire Ricardo Salinas, added 0.1 percent to 502.22 pesos. Wal-Mart de Mexico SAB de CV (WALMEXV MM), Latin America’s largest retailer, advanced 1.2 percent to 34.36 pesos.

Grupo Financiero Banorte SAB (GFNORTEO MM): Mexico’s third- largest bank by outstanding loans said net income was 1.76 billion pesos ($146 million) in the fourth quarter. Outstanding loans were 263 billion pesos, the company said today in an e- mailed statement. Banorte slipped 1.1 percent to 54.23 pesos.

To contact the reporters on this story: Jonathan J. Levin in Mexico City at jlevin20@bloomberg.net; Nathan Gill in Quito at ngill4@bloomberg.net

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

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