Bloomberg News

Parque Arauco Advances First Day in Four on CEO Succession

October 19, 2011

(Updates with closing prices in second paragraph.)

Oct. 19 (Bloomberg) -- Parque Arauco SA, a Chilean shopping center developer and operator, advanced after the biggest two- day drop in a month on optimism about its chief executive officer succession plan.

Parque Arauco advanced 3.7 percent to 890.11 pesos at the close in Santiago, the steepest increase since Aug. 11. The benchmark Ipsa index rose 0.9 percent. The company’s shares fell 4.1 percent during the previous two sessions.

The company announced after the close of trading on Oct. 14 that Andres Olivos had resigned as CEO. It appointed Juan Antonio Alvarez as his successor, according to a statement posted Oct. 17.

“Surely investors are buying after speaking with the company and learning that Olivos will remain linked to Parque Arauco one way or another,” Rodrigo Ordonez, an analyst at the local brokerage unit of Banco Santander SA, said in a phone interview today. “The change in management won’t be as terrible as some had thought.”

Officers at Parque Arauco’s external relations office were not available to comment, an assistant said by phone.

--Editors: Richard Richtmyer, Glenn J. Kalinoski

To contact the reporter on this story: Eduardo Thomson in Santiago at ethomson1@bloomberg.net

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


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