Gafisa Advances on Alphaville Unit Bid Report: Sao Paulo Mover
Shares rose 6.9 percent to 4.01 reais at 1:24 p.m. in Sao Paulo after earlier advancing as much as 8.3 percent in the biggest intraday gain since Feb. 22. The company was the best performer on the Bovespa index, which added 0.7 percent.
Gafisa has received four offers to acquire its Alphaville Urbanismo subsidiary that valued the unit as high as 1.9 billion reais ($940 million), according to Valor, which didn’t say where it got the information. Gafisa’s market capitalization was 1.6 billion reais yesterday, according to data compiled by Bloomberg. Alphaville builds expensive houses and apartments.
The Sao Paulo-based homebuilder declined to comment when contacted by Bloomberg News. Gafisa had said in a regulatory filing on September that it is considering strategic options regarding Alphaville, including an initial public offering. The unit was registered as a public company on March 28.
The homebuilder’s shares declined 20 percent this year through yesterday while the Bovespa slid 10 percent during that same period.
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