(Updates share price in second paragraph.)
Nov. 4 (Bloomberg) -- CCR SA, Brazil’s biggest toll-road operator, dropped the most in more than a week on concern the national transportation agency will reduce the return rate the company gets from the Via Dutra highway.
CCR fell 1.5 percent to 46.85 reais at the close of trading in Sao Paulo, the steepest decline since Oct. 25. The benchmark Bovespa stock index added 0.8 percent.
The company gets a 17.9 percent return from Via Dutra, the highway connecting Sao Paulo with Rio de Janeiro, and the government wants to cut it to 7 percent, O Estado de Sao Paulo newspaper reported, citing Bernardo Figueiredo, head of the transportation agency known as ANTT.
ANTT’s press officer, who asked not to be identified in accordance with company policy, confirmed the information in Estado’s report. CCR didn’t immediately comment.
The highway needs about 2 billion reais ($1.1 billion) in investments, according to Estado. If the government fails to reach an agreement with CCR it may decide to end the contract with the company, the newspaper reported.
The Brazilian Association of Concession Road Operators, known as ABCR, said in an e-mailed statement that it considers the negotiations between the government and the highway operators to be normal.
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