Odontoprev Gains to Record on M&A Outlook in Brazil Health Care Industry
Odontoprev SA, Brazil’s largest provider of dental-care plans, rose to a record in Sao Paulo on speculation mergers and acquisitions will imply higher value for assets in the industry.
The stock gained 3.6 percent to 24.42 reais at 11:08 a.m. New York time and earlier jumped as much as 9.9 percent, the most intraday in two months. Odontoprev has advanced 15 percent since Oct. 8.
Tempo Participacoes SA, a health-insurance company, said Oct. 15 it’s seeking business opportunities or a possible sale. Tempo was responding to a report in Valor Economico newspaper that the company is seeking a buyer for about 900 million reais ($541.3 million).
“There’s speculation on Tempo,” said Marcelo Varejao, an analyst at Sao Paulo-based brokerage Socopa Corretora. “The eventual premium paid for Tempo will help price the industry.”
Odontoprev Chief Executive Officer Randal Zanetti said Aug. 19 he sees “consolidation possibilities” in Brazilian health care. The company agreed in August to form a dental-care company with lenders Banco do Brasil SA and Banco Bradesco SA.
Diagnosticos da America SA, the medical-diagnostics firm known as Dasa, fell 2.2 percent to 19.91 reais.
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