Madeco Jumps After Announcing Company Split: Santiago Mover
Madeco SA (MADECO), the wire producer owned by Chile’s richest family, rose the most in 14 months after saying it will consider splitting off its stake in a French company into a separate unit.
Madeco’s shares advanced 7 percent to 19 pesos today in Santiago for the biggest gain since Nov. 30, 2011.
The company’s board instructed management to begin studying the steps required to separate the company into two, according to a filing sent to Chile’s regulator yesterday after the market closed. One part would hold Madeco’s holding in French wire producer Nexans SA. (NEX) The second would hold interests in industrial units such as packaging company Alusa SA and metal tubes producer Madeco Mills SA.
Such a split could attract investors seeking more tailored bets on the company’s operations, according to German Guerrero, a partner at Santiago-based brokerage and asset management firm MBI Inversiones.
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