EEB Declines After Radio Report About Merger Tweet: Bogota Mover

Empresa de Energia de Bogota SA, the electricity provider in Colombia’s capital, dropped to a one-month low after W Radio reported the company’s newly appointed president had mentioned on his personal Twitter account a plan to merge city-controlled utilities.

Shares fell 2.2 percent to 1,330 pesos at 2:35 p.m. in Bogota, headed for its lowest closing price since Jan. 2. The company, which was added to the Colcap index last week, has rallied 4.3 percent this year.

Fernando Gomez, who was named EEB president last week, said on his Twitter social-media account that merging the energy provider with the city’s water utility would make a stronger company, W Radio reported on its website, without saying when the posting was made. The idea of merging the companies “is in the past,” Gomez said in response to the report in an interview broadcast on W.

“I don’t think the company needs significant changes or differences than continuing the path for growth and profits that it has handed to investors,” Gomez said on W.

A spokesman for EEB, Juan Felipe Gonzalez, declined to comment on Gomez’s Twitter posts. The Twitter account cited by W, @ferchogomez70, is private.

“The market didn’t like the Tweets from the new president,” Juan David Ballen, an analyst at Alianza Valores, said by e-mail.

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