Bonds and shares of Eike Batista’s companies dropped after an O Estado de S. Paulo columnist speculated the Brazilian billionaire may consider restructuring debt.
EBX Group Co., the holding company for most of Batista’s assets, may be considering restructuring its debt, Sonia Racy wrote on her blog today, citing market speculation she didn’t identify. The report is sending down the price of Batista’s companies today, Claudio Coppola di Todaro, a fund manager at RC Gestao de Recursos Ltda., said.
LLX Logistica SA, Batista’s developer unit, lost 5.5 percent to 1.18 reais at 12:12 p.m. in Sao Paulo today, the worst-performing stock on the Brazilian benchmark Ibovespa index. OGX Petroleo & Gas Participacoes SA, the tycoon’s oil unit, declined 3.9 percent to 1 real, a record intraday low. OGX’s bonds due in 2018 slumped 7.8 cents to 41.5 cents on the dollar, also the lowest on record.
“The share price is telling me that there is something wrong going on,” Coppola di Todaro said by telephone from Sao Paulo today. Batista “entered into a spiral where bad news follows more bad news. Something has to happen soon.”
EBX’s press office in Rio de Janeiro didn’t immediately reply to an e-mail seeking comments on the Estado report.