Bloomberg News

Latin Day Ahead: Femsa Is Holding Talks on Beer Division

October 02, 2009

Fomento Economico Mexicano SAB (FEMSAUBD) is holding talks “with several parties” regarding its beer business. Rossi Residencial SA and PDG Realty SA Empreendimentos & Participacoes are selling 2 billion reais ($1.11 billion) of new stock to tap surging demand. Brazil’s “big-scale” farmers are starting their own marketing and risk-management company to sell their production. Shares in emerging markets dropped to the lowest in more than two weeks as falling oil and metal prices hurt earnings prospects for producers.

TOP STORIES; MOST READ ON BLOOMBERG

Femsa Is Holding Talks with ‘Several Parties’ on Beer Division

Fomento Economico Mexicano SAB, Latin America’s largest beverage company, is holding talks “with several parties” regarding its beer business.

Rossi, PDG Are Raising 2 Billion Reais in Brazil Share Sales

Rossi Residencial SA (RSID3) and PDG Realty SA Empreendimentos & Participacoes, Brazilian homebuilders whose shares have more than doubled this year, are selling 2 billion reais ($1.11 billion) of new stock to tap surging demand.

Brazil’s Cotton Farmers Form Geneva-Based Commodities Company

Brazil’s “big-scale” farmers in cotton, soybeans and corn are starting their own marketing and risk-management company to sell their production.

Emerging-Market Stocks Fall to 2-Week Low; Russia, Poland Drop

Shares in emerging markets dropped to the lowest in more than two weeks as falling oil and metal prices hurt earnings prospects for producers. Bonds and currencies declined.

MAIN COMPANIES:

Argentina

YPF SA (YPFD) : Repsol YPF SA said its Argentine unit plans to invest $396 million to upgrade an oil and natural gas refinery in western Argentina. The project seeks to increase the quality of the refined fuel at YPF’s Lujan de Cuyo refinery, in the province of Mendoza, Sebastian Eskenazi, a YPF vice president, said in an e-mailed statement. YPF fell 1 percent to 144 pesos.

Brazil

Hypermarcas SA (HYPE3) (HYPE3 BS): The Brazilian consumer products company said it acquired diaper brands Pom Pom and BigFral in Brazil for an undisclosed amount. Hypermarcas, which announced the transaction in a regulatory filing, rose 1.6 percent to 35.25 reais.

Iguatemi Empresa de Shopping Centers SA (IGTA3 BS): Scialpha Participacoes SA, a unit of the mall and commercial property operator, secured a credit line worth 90 million reais ($50.4 million) with Banco Bradesco SA, Iguatemi wrote in a regulatory filing. Iguatemi advanced 0.6 percent to 27.96 reais.

Rossi Residencial SA (RSID3 BS): The Sao Paulo-based homebuilder is selling 74.3 million new shares for 12.50 reais each or a total of 928 million reais ($520 million), according to data posted on the Web site of Brazil’s securities regulator. Rossi fell 6.7 percent to 13.3 reais.

Chile

Banco Santander Chile (BSAN) : The country’s biggest lender probably will rise to 33.10 pesos next year, CorpResearch wrote in a note to clients, initiating coverage with a “hold” rating. Santander slid 3 percent to 29.51 pesos.

Mexico

Fomento Economico Mexicano SAB (FEMSAUBD MM): Latin America’s largest beverage company confirmed it’s in talks with several companies about opportunities involving its beer business. There is no certainty that the discussions will lead to a definitive agreement, the company said today in an e-mailed statement. Femsa, as the company is known, rose 13 percent to 57.80 pesos.

LATIN AMERICAN MARKETS:

Brazil: Industrial production rose 1.1 percent in August, from a 2.2 percent increase in July, according to the median estimate of 27 economists in a Bloomberg survey. The report will be released at 8 a.m. New York time.

The real fell 1.1 percent to 1.7868 per dollar.

The yield on the zero-coupon, real-denominated bond due in January 2010 rose five basis points to 8.72 percent, according to Bloomberg prices.

Other prices in Latin American markets:

Peru: The sol dropped 0.3 percent to 2.8915 per dollar.

The yield on Peru’s 8.6 percent bond maturing August 2017 rose one basis point to 4.93 percent, according to Citigroup Inc.’s unit in Lima.

Argentina: The peso was little changed at 3.8430 per dollar.

The yield on the country’s inflation-linked peso bonds due in December 2033 fell five basis points to 11.66 percent, according to Citigroup Inc.’s local unit.

Chile: The peso dropped 0.8 percent to 554.35 per dollar.

The yield for a basket of Chile’s 10-year peso bonds in inflation-linked currency units, called unidades de fomento, fell four basis points to 2.76 percent, according to Bloomberg composite prices.

Colombia: The peso dropped 0.5 percent to 1,928.60 per dollar.

The yield on Colombia’s benchmark 11 percent bonds due July 2020 rose seven basis points to 8.99 percent, according to Colombia’s stock exchange.

Mexico: The peso fell 1.5 percent to 13.7186 per dollar.

The yield on Mexico’s 10 percent bond due December 2024 gained three basis points to 8.23 percent, according to Banco Santander SA.

ECONOMIES: Brazil releases its August industrial production; Uruguay announces its September consumer prices; Venezuela publishes its weekly crude oil basket; Colombia releases its September producer price index.

To contact the reporter on this story: Helder Marinho in Rio de Janeiro at hmarinho@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos in New York at papadopoulos@bloomberg.net


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