Batista’s MMX Soars Second Day on Asset Sale Outlook: Rio MoverJuan Pablo Spinetto
MMX Mineracao & Metalicos SA, the iron-ore producer controlled by Brazilian billionaire Eike Batista, posted the biggest two-day increase in more than four years as it seeks to sell assets to raise cash.
MMX surged 18 percent to 1.65 reais at the close of trading in Sao Paulo, extending its two-day gain to 30 percent, the most since April 2009. The stock led gains on the benchmark Ibovespa, which climbed 2 percent.
Glencore Xstrata Plc is among three companies in talks to buy some assets from MMX, two people with knowledge of the negotiations said last week. The Rio de Janeiro-based company said yesterday it hired advisers to sell assets to Brazilian and foreign investors, without naming any potential buyer.
“The shares are gaining on expectations of a possible deal,” Aloisio Lemos, an equity analyst at brokerage Agora Corretora in Rio, said in a phone interview. “That’s absolutely the driver of the stock at the moment.”
Batista is in advanced negotiations to sell a stake in MMX or some assets to a joint venture formed by Glencore and Grupo BTG Pactual SA, newspaper Valor Economico reported today, without saying how it got the information.
A spokesman for Baar, Switzerland-based Glencore declined to comment on the Valor article. BTG said it doesn’t comment on speculation in an e-mailed response to questions.