Panamericano Seen Extending Stock Rally After Rescue
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Banco Panamericano SA, one of seven mid-size Brazilian banks requiring a bailout or liquidated since 2010, is forecast by analysts to extend an industry-leading rally fueled by a 3.8 billion-real ($1.9 billion) rescue that has it outperforming controlling shareholder Grupo BTG Pactual.
Panamericano surged 28 percent this year in Sao Paulo trading to 6.58 reais, the best return in the 15-company Brazil Financial Index and almost four times as much as BTG. Sao Paulo-based BTG took a stake in the company in 2011 amid a criminal probe into accounting irregularities, which is still under way. Panamericano’s first-quarter profit ended a three-quarter streak of losses and was the highest in two years.