Brasil Ecodiesel Industria e Comercio de Biocombustiveis e Oleos Vegetais SA, Brazil’s biggest biodiesel maker, fell the most in almost eight months after saying it is in talks to combine assets with farm group Maeda SA Agroindustrial SA.
Brasil Ecodiesel fell 8 percent, leading losses on the Bovespa index, to 1.15 reais at 2:32 p.m. New York time in Sao Paulo trading. Shares slumped 10.4 percent earlier today, the biggest loss since March 5.
The company, based in Rio de Janeiro, said it may conclude the deal by Dec. 31. The company said Maeda’s shareholders may receive one Brasil Ecodiesel share for every 3.6395 shares they own.
“Investors were disappointed by the implicit share price of the accord,” Victor Martins, an analyst with Sao Paulo-based Planner Corretora de Valores, said today in a phone interview. He estimates the implicit share price of the deal would be 88 centavos. He cut his rating to “neutral” from “buy” after the statement was released.
Source: www.bloomberg.com
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