Odontoprev Rallies in Sao Paulo After Dental Plan Joint Venture
Odontoprev SA (ODPV3), a Brazilian dental benefits company, soared the most in three years after signing a deal with Banco do Brasil SA (BBAS3) and BB Seguridade Participacoes SA (BBSE3) to create a joint venture to sell dental plans.
Odontoprev shares rose 4.1 percent to 10.03 reais at 1:25 p.m. in Sao Paulo after earlier surging as much as 9 percent in the biggest intraday gain since October 2010. Banco do Brasil declined 1.8 percent to 23.52 reais and BB Seguridade fell 1.2 percent to 17.74 reais. The benchmark Ibovespa (IBOV) retreated 2.2 percent.
Odontoprev will have a 25.01% stake in the new company, which will be named Brasildental Operadora de Planos Odontológicos SA, according to a regulatory filing from the dental benefits company today. Banco do Brasil and its subsidiary will hold the remaining 74.99%.
The press offices of Odontgoprev, Banco do Brasil and BB Seguridade didn’t immediately respond to phone calls from Bloomberg News seeking comment.
Odontoprev’s profits have trailed analysts estimates in six of the past eight quarters, data compiled by Bloomberg show. Shares declined 6.6 percent this year, while the Ibovespa dropped 17 percent.
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