ALL Rises After Pledge to Challenge Argentine Rail SeizuresJulia Leite
ALL America Latina Logistica SA rose the most in two weeks after the Brazilian freight company said it will challenge Argentina’s decision to revoke its licenses.
The shares gained 1.2 percent to 10.88 reais at the close of trading in Sao Paulo, its biggest one-day advance since May 22. Trading volume was 1.4 times the three-month daily average. The Ibovespa rose 0.2 percent.
Argentina expropriated a cargo railway concession and a tourist train concession from ALL on June 4, citing noncompliance with contractual agreements. ALL incurred “grave” contract violations by failing to invest and accumulating fines worth 30 percent of the concession, Interior and Transport Minister Florencio Randazzo said in Buenos Aires.
Curitiba, Brazil-based ALL said in a regulatory filing yesterday after the market closed that it will adopt all adequate measures to challenge Argentina’s decision to revoke its concessions.
“I think this legal fight will take a while to affect the company’s results,” Daniela Ribeiro Martins, an analyst at brokerage Concordia SA CVMCC, said by phone from Sao Paulo. “The company was already interested in leaving the operations in Argentina.”
The shares plunged as much as 2 percent yesterday before closing 0.4 percent lower. ALL has rallied 31 percent this year, while the benchmark Ibovespa gauge has lost 13 percent.