Batista Companies Lead Bovespa After BTG Agreement: Rio Mover
MMX Mineracao (MMXM3) & Metalicos SA and OGX Petroleo (OGXP3) & Gas Participacoes SA, Eike Batista’s mining and oil companies, led gains in Brazil’s benchmark index after the billionaire’s holding EBX Group Co. signed a financing agreement with Grupo BTG Pactual. (BBTG11)
MMX jumped 16 percent to 3.61 reais at 11:21 a.m. in Sao Paulo today and OGX gained 15 percent to 3.36 reais after rising as much as 20 percent, the biggest intraday increase since Sept. 30, 2008. The stocks were the two best performers on Brazil’s Bovespa index, which advanced 1.5 percent today. LLX Logistica SA, Batista’s port developer unit, was the third-biggest gainer in the Bovespa after rising 11 percent.
“Funds have been underweight in Eike’s companies,” Dany Rappaport, who helps manage 250 million reais ($127 million) at Investport in Sao Paulo, said by phone. “There was short covering, it was a reversal” after the BTG announcement.
Batista, 56, signed a so-called strategic cooperation agreement with billionaire Andre Esteves’s BTG for financial advice, lines of credit and future long-term capital investments in projects, EBX said in an e-mailed statement yesterday.
The 56-year-old entrepreneur is seeking to raise money, including through the sale of assets, to boost output at existing projects. His oil business cut production targets in June, fueling additional declines at six publicly traded companies he owns.
To contact the editor responsible for this story: James Attwood at email@example.com