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Chile’s Madeco Jumps on Bets Luksic Is Boosting Control

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Jan. 22 (Bloomberg) -- Madeco SA, the Chilean copper wire producer, surged the most in 18 months on speculation the controlling Luksic family may be increasing its stake as the company’s board considers a breakup.

Madeco advanced 11 percent to 22 pesos at the close in Santiago, the biggest increase since July 7, 2011. Traded volume reached 683 million shares, 9.4 percent of the stock outstanding, or about about 178 times the daily average over the past three months.

“It may be that the Luksices are buying stocks from small-cap funds before its planned split of the company,” German Guerrero, a partner at brokerage and asset management firm MBI Servicios Financieros in Santiago, said in a phone interview.

Quinenco SA, the holding company of the heirs of Andronico Luksic, controls Santiago-based Madeco with a 55.4 percent stake, according to Quinenco’s website. Pilar Rodriguez, an investor relations officer at Quinenco, didn’t immediately respond to a phone call seeking comment.

Madeco’s board has instructed management to begin studying the steps required to separate the company into two, according to a filing with regulators on Jan. 7. One part would contain Madeco’s holding in French wire producer Nexans SA. The second would consist of interests in industrial units such as packaging company Alusa SA and metal tubes producer Madeco Mills SA.

To contact the reporter on this story: Eduardo Thomson in Santiago at ethomson1@bloomberg.net

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

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