CCR Drops as Higher Toll Scrapped Amid Protests: Sao Paulo Mover

CCR SA (CCRO3), which manages highways including the main route connecting Sao Paulo and Rio de Janeiro, plunged after Sao Paulo Governor Geraldo Alckmin scrapped a toll increase amid nationwide protests.

The shares fell 3 percent to 16.31 reais at 12:33 p.m. in Sao Paulo, set for the lowest closing level since July 2012. Ecorodovias Infraestrutura & Logistica SA, Brazil’s largest toll-road operator, dropped 3.2 percent to 14.42 reais. Arteris SA (ARTR3) declined 4.8 percent to 17.90 reais. The Ibovespa benchmark gauge plunged 3.1 percent.

The state suspended the toll increase of as much as 6.5 percent that was set to take effect July 1, Alckmin told reporters in Sao Paulo today. The state had already canceled fare increases for buses, trains and subways that sparked the biggest street protests in almost two decades.

The state will suspend fines for delays in construction and fees it charges from the companies to offset the scrapped increases in fares, according to Alckmin. The total cost for the government will be 400 million reais ($178 million) in 2013, according to Transportation Secretary Saulo de Castro Abreu Filho.

To contact the reporters on this story: Julia Leite in New York at jleite3@bloomberg.net; Denyse Godoy in Sao Paulo at dgodoy2@bloomberg.net

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

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.