Gafisa SA, Brazil’s third-biggest homebuilder by revenue, received a bid from an investment fund to buy all of the company’s shares, a person familiar with the matter said.
The proposed deal will be announced soon, the person said without identifying the bidder. The person declined to be named because the talks are private.
Gafisa jumped 6 percent to 4.77 reais at the close of trading in Sao Paulo yesterday, the biggest one-day advance since Jan. 2. It was the best performer on the benchmark Bovespa index, which gained 0.5 percent.
The shares rose after Relatorio Reservado reported that Gafisa would be sold to U.S. investors who plan to buy all of the homebuilder’s outstanding shares, citing an unidentified employee.
“Earnings have disappointed, so an acquisition could be a good thing for shareholders, depending on the price offered,” Erick Hood, an analyst at SLW Corretora brokerage, said by phone from Sao Paulo.
An official at an external press relations firm representing Gafisa, who asked not to be identified in accordance with company policy, said the homebuilder doesn’t comment on market rumors.
Gafisa’s consolidated new projects fell 21 percent in 2011 and came at the bottom of its forecasted range of 3.5 billion reais ($2 billion) to 4 billion reais, according to a regulatory filing on Jan. 19. Contracted sales dropped 16 percent from a year before.