Bloomberg News

CCR Gains to 8-Month High on Toll Rise Speculation

June 17, 2008

Cia. de Concessoes Rodoviarias, Brazil's biggest toll-road operator, jumped to the highest price since October in Sao Paulo trading on speculation profit may rise as toll prices are increased to counter accelerating inflation.

CCR, as the Sao Paulo-based company is known, rose 4.4 percent to 35.86, its biggest advance since May 30.

Sao Paulo state adjusts tolls on its roads every July 1 based on the IGP-M inflation measure, which in May topped 11.5 percent. Increased traffic on the state's roads will also help boost earnings, said Uniao de Bancos Brasileiros SA analyst Fernando Abdalla.

``We're talking about IGP-M of 11.5 percent and growth in traffic of 7.8 percent, which means growth of almost 20 percent in revenue'' for toll-road companies, Abdalla said in a phone interview.

Two roads operated by CCR in Sao Paulo, and which account for about two-thirds of the company's revenue, will have tolls adjusted next month, Abdalla said in a phone interview.

Obrasco Huarte Lain Brasil SA, the toll-road unit of Spanish builder Obrascon Huarte Lain SA (OHL), rose 1.7 percent to 27.70 reais. OHL has gained 42 percent in the past two months, compared with a 29 percent rally for CCR and a 6 percent advance for the Bovespa index.

To contact the reporter on this story: Paulo Winterstein in Sao Paulo at pwinterstein@bloomberg.net.

To contact the editor responsible for this story: Chris Nagi at at chrisnagi@bloomberg.net.


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