Gafisa Received Preliminary Proposal for Asset Acquisition

Gafisa SA (GFSA3), Brazil’s third-biggest homebuilder by revenue, received a preliminary proposal for asset acquisition from Sam Zell and GP Investments Ltd. (GPIX)

The homebuilder is assessing the offer from investors which was mentioned in a report on Exame magazine’s website, Gafisa said in a regulatory filing today. Exame reported earlier this week that Zell was in talks with GP for a partnership to buy control of Gafisa, without saying where it obtained the information.

Gafisa rose 5.9 percent to 5.35 reais after the close in Sao Paulo today, reaching its steepest three-day gain since May 2009. In the previous two sessions, the stock also rose after the company was said to receive a bid from an investment fund to buy all of its shares.

The homebuilder received a bid from an investment fund and the proposed deal will be announced soon, a person familiar with the matter who asked not to be identified because the talks are private said earlier this week. The person declined to identify the bidder.

Gafisa said it has no information about any public offering for the acquisition of its shares, according to the filing today.

GP declined to comment, according to an e-mailed statement sent by an external press officer in Rio de Janeiro. Equity International also declined to comment, spokeswomen Allison Davis said in an e-mailed response to Bloomberg News.

Zell, through Equity International, sold his remaining stake in Gafisa after previously owning as much as 23 percent of the Sao Paulo-based homebuilder, according to an August statement.

Rivals’ Proposal

In a separate story published today, Exame said Gafisa also got proposals for asset acquisition from Brazilian rivals Cyrela Brazil Realty SA Empreendimentos & Participacoes, PDG Realty SA Empreendimentos & Participaçoes, Ez Tec Empreendimentos & Participacoes and Brookfield Incorporacoes SA. (BISA3) The report cited unidentified executives close to Gafisa.

Cyrela doesn’t confirm the interest in Gafisa, according to an e-mailed statement sent by the company’s external press office in Rio de Janeiro. Ez Tec denied it sent a proposal for the acquisition of Gafisa assets, according to an e-mailed statement sent by its external media relations company.

Brookfield declined to comment, according to a statement sent by its external media relations company. PDG didn’t immediately returned phone calls asking for comments.

To contact the reporters on this story: Telma Marotto in Sao Paulo at tmarotto1@bloomberg.net; Katerina Petroff in Sao Paulo at kpetroff@bloomberg.net

To contact the editor responsible for this story: Helder Marinho at hmarinho@bloomberg.net

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