Deals
Kroton, Estacio Lead Gains on Ibovespa as Acquisition Eyed
- News merger being studied fuels bets other deals may follow
- Better-than-expected manufacturing report also buoys stocks
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The Ibovespa rose for a second day as a possible merger between for-profit college managers Estacio Participacoes SA and Kroton Educacional SA fueled speculation that cheap asset prices may fuel other deals.
The university operators, the biggest in Brazil by market value, posted the best gains on the benchmark equity index Thursday after Kroton said it’s studying a bid to take over its smaller rival. A government report showing that manufacturing unexpectedly rose in April from a month earlier also buoyed stocks.