Colbun, Embraer, Entel, 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 decreased 2.3 percent to 4,318.64, its biggest decrease in 10 weeks.

Brazil

Cia. Brasileira de Distribuicao Grupo Pao de Acucar (PCAR4 BS): Brazilian federal prosecutors are requesting clarification on the possible use of public funds by BNDESPar, a subsidiary of national development bank BNDES, in the merger of Pao de Acucar and Carrefour SA.

Prosecutors want to clarify the origin of funds that would be used, and whether there is a social interest justifying their deployment, according to a statement on the Prosecution Service’s website. The shares fell 2.5 percent to 66.30 reais.

Diagnosticos da America SA (DASA3) (DASA3 BS): The medical- diagnostics firm known as Dasa was cut to “market perform” from “outperform” at Bradesco Corretora. The brokerage has a share-price estimate of 23.40 reais. The stock lost 2.4 percent to 20.50 reais.

Embraer SA (EMBR3) (EMBR3 BS): The world’s fourth-largest airplane maker delivered 25 commercial and 23 executive jets in the second quarter, according to a regulatory filing. The plane maker has delivered 76 aircraft so far in 2011 and its backlog at June 30 was $15.8 billion. The stock fell 2.7 percent to 11.39 reais.

Vale SA (VALE3) (VALE5 BS): Fitch Ratings affirmed a BBB+ credit rating for the world’s biggest iron-ore exporter and gave it a stable outlook. The rating takes into account the company’s “solid” business profile and its strong balance sheet and cash flow from operations, according to a statement from Fitch. Vale shares fell 1.1 percent to 45.61 reais.

Chile

Colbun SA (COLBUN) : The Chilean power generator was reiterated “buy” at the brokerage unit of local lender Corpbanca, which reduced its year-end 2011 price estimate of 155 pesos. Colbun rose 0.1 percent to 131.41 pesos.

Empresa Nacional de Telecomunicaciones SA (ENTEL CC): Chile’s second-largest mobile-phone operator has filed with the nation’s securities regulator to sell up to $470 million in inflation-indexed bonds. Entel, as the company is also known, has filed to sell up to 5 million Unidades de Fomento, Chile’s inflation-linked accounting unit, in 10-year bonds and another 5 million UF in 30-year bonds. Entel rose 0.7 percent to a record 9,897.1 pesos.

Colombia

Ecopetrol SA (ECOPETL) : Colombia’s biggest oil company said it is preparing to make repairs to a pipeline that was sabotaged on July 9. The Cano Limon pipeline was damaged in the northeastern province of Norte de Santander, an Ecopetrol official who can’t be identified because of company policy said in an e-mail yesterday. The stock decreased 2.6 percent to 3,605 pesos.

Mexico

Cemex SAB (CEMEXCPO MM): The largest cement maker in the Americas plans to issue 2.5 billion pesos ($212 million) of bonds through a trust fund that will be used to repay similar bonds and extend their maturities. The stock slipped 2.4 percent to 9.50 pesos.

Grupo Aeroportuario del Centro Norte SAB (OMAB MM): The company that runs international airports in the northern and central regions of Mexico said passenger traffic climbed 0.7 percent in June from the same period last year, according to a statement. The shares dropped 0.2 percent to 26.9 pesos.

To contact the reporter on this story: Bryan Gibel in New York at bgibel@bloomberg.net

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

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