(Updates with closing prices in second paragraph.)
July 8 (Bloomberg) -- Gol Linhas Aereas Inteligentes SA, Brazil’s second-biggest airline by market value, advanced the most in a week in Sao Paulo trading on speculation it will buy closely-held rival Webjet Linhas Aereas SA.
Gol gained 3.5 percent to 19.77 reais at the 4:15 p.m. New York time close, the most on a closing basis since July 1. The stock earlier jumped as much as 6.4 percent.
The company, based in Sao Paulo, said in a filing that it’s in talks with Webjet, without elaborating further. Gol will announce the acquisition of the smaller airline today, O Estado de S. Paulo newspaper reported earlier, without saying where it obtained the information.
Officials at outside press agencies representing Webjet and Gol, who asked not to be identified due to internal policy, declined to comment when contacted by Bloomberg News today.
The deal would help Gol compete with rival Tam SA, which is being bought by Chile’s Lan Airlines SA, said Fernando Goes, an analyst at brokerage Octo Investimentos SA in Rio de Janeiro.
“The market is seeing that it will gain market share and reduce competition,” Goes said in a telephone interview.
--With assistance from Felipe Frisch in Sao Paulo. Editors: Marie-France Han, Glenn J. Kalinoski
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