(Adds closing price in second paragraph.)
Oct. 5 (Bloomberg) -- Tam SA rose the most in six weeks, snapping a six-day losing streak, after Lan Airlines SA said it will challenge restrictions set by a Chilean court that approved its merger with the Brazilian carrier.
Tam, Brazil’s biggest airline by market value, rose 7 percent to 28.50 reais at 4:15 p.m. New York time close. Shares had fallen 21 percent in the six trading sessions through yesterday.
“Tam’s main driver today is the merger,” said Rosangela Ribeiro, an analyst at SLW Corretora in Sao Paulo, in a telephone interview. “Tam has fallen too much recently.”
Lan said yesterday it will appeal to Chile’s Supreme Court to overturn some restrictions that antitrust authorities imposed on its $2.7 billion purchase of Tam. Mitigation measures set by Chile’s antitrust court, known as TDLC, on Sept. 21 may shave $10 million off the expected $400 million in annual savings from the merger , Lan said in a statement.
Tam shares are also benefitting from gains in the real, which strengthened 1.2 percent today. The currency had plunged 12 percent in the month through yesterday, increasing Tam’s costs and expenses in dollars, Ribeiro said.
“Tam suffered a lot because of the dollar,” said Ribeiro, who rates the carrier’s stock as “buy.” Tam will remain volatile until the Lan deal is closed in early 2012, said the analyst.
Lan gained 6.9 percent to 10,751 pesos in Santiago.
--Editors: Brendan Walsh, Richard Richtmyer
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