ALL Declines Amid Concerns Over Cosan Deal: Sao Paulo Mover
ALL America Latina Logistica SA (ALLL3) dropped the most in more than three months on concerns that the sale of a stake to Cosan SA Industria & Comercio (CSAN3) may make the company focus on the transportation of agricultural products.
ALL declined 4.6 percent to 10.33 reais at 3:24 p.m. in Sao Paulo, after earlier falling 5.7 percent, the most since Nov. 17. The Bovespa stock index dropped 0.3 percent.
Cosan agreed to pay 896.5 million reais ($523.8 million), or 23 reais a share, for 5.67 percent of ALL, Latin America’s largest railroad company, Sao Paulo-based Cosan said in a statement on Feb 21. Cosan jointly controls the world’s largest sugar-cane processor with Royal Dutch Shell Plc.
“There is concern that with Cosan in management, ALL’s trend would be to focus back on transportation of agricultural products”, Daniela Bretthauer, an analyst at Raymond James, said in an e-mailed response to Bloomberg News. She rates the stock “market perform.”
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