June 27 (Bloomberg) -- MMX Mineracao & Metalicos SA, Brazilian billionaire Eike Batista’s iron-ore producer, headed for the biggest four-day rally in a year after saying it’s in talks to sell a stake or assets to companies including Glencore Xstrata Plc and Trafigura Beheer BV.
MMX rose 1.8 percent to 1.70 reais at 11:23 a.m. in Sao Paulo, taking its four-day gain to 33 percent, the most since July 2012. The rally is paring MMX’s decline this year to 65 percent, the worst performance of emerging-market miners worth at least $500 million after India’s MMTC Ltd.
Batista is selling assets after delayed projects and missed targets at his commodities and energy empire wiped about $30 billion from his personal fortune since a March 2012 peak. He has sold part of an OGX Petroleo & Gas Participacoes SA oil field to Petroliam Nasional Bhd and a stake in power producer MPX Energia SA to EON SE this year and has also put a private jet for sale. His EBX Group Co. holding company said this month that it restructured its debt.
An MMX deal may include shares held by Batista, the Rio de Janeiro-based company said in a regulatory filing yesterday after markets closed. “At this time no documents have been signed and there are no definitions that allow the company to say which road it will follow,” MMX said. Newspaper Folha de Sao Paulo reported the talks on June 25.
Charles Watenphul, a spokesman for Baar, Switzerland-based Glencore, declined to comment on any talks in an e-mailed response to questions. Trafigura’s head of media relations, Victoria Dix, also said by e-mail that the company won’t comment.
LLX Logistica SA, Batista’s cargo transportation company, also soared earlier today, gaining as much as 8.8 percent and heading to its biggest three-day increase since May 2009, after announcing on June 25 that it hired advisers to assess business opportunities including asset and security transactions.
Batista will also split EBX so that his logistics and commodities companies are no longer connected to make asset sales easier, newspaper O Estado de Sao Paulo reported today.
Glencore is in talks to buy MMX’s Sudeste port in Rio state for about 2 billion reais ($920 million), a person familiar with the negotiations, who asked not to be named because the preliminary talks are private, said in an interview this month.
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