Gol Rises on Reports of Stake Sale to Delta: Sao Paulo Mover

Gol Linhas Aereas Inteligentes SA (GOLL4), Brazil’s second-largest airline by market value, rose the most in a week after a newspaper report said it is negotiating the sale of an additional stake to Delta Air Lines Inc. (DAL)

Shares rose 4 percent to 10.17 reais at the close in Sao Paulo, the biggest gain since April 17. Brazil’s benchmark index Bovespa rose 0.7 percent. Delta climbed 0.9 percent to $10.48 in New York.

Folha de S.Paulo reported today that Gol is negotiating the sale of an additional 17 percent stake to Delta, which already owns 3 percent of the carrier. The newspaper cited unnamed sources close to Gol and Delta. Gol denied it is in talks to sell an additional stake to the Atlanta-based carrier. Delta spokeswoman Sarah Lora declined to comment.

“Today’s Folha story brings back to mind last December’s deal,” said Barclays Plc analyst Daniel Spilberg in a telephone interview from Sao Paulo. “If the report turns out to be true, it could really be very good for the stock.”

Delta agreed to buy 3 percent of Gol on Dec. 7 for $100 million. When the deal was announced, Richard Anderson, Delta’s chief executive officer, said Gol shares were “significantly undervalued.” Gol rallied 3.6 percent to 15.50 reais that day.

Tam SA, Brazil’s largest airline, fell 0.5 percent to 45.80 reais.

To contact the reporter on this story: Jose Sergio Osse in Sao Paulo at josse1@bloomberg.net

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

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