Bloomberg News

Brazil’s Confab Rises Most in Four Weeks on Petrobras Deal

December 14, 2011

(Updates with closing prices in second paragraph.)

Dec. 13 (Bloomberg) -- Confab Industrial SA, a Brazilian maker of steel tubes, gained the most in four weeks after saying it’s close to signing a 657 million-reais ($352.5 million) contract with Petroleo Brasileiro SA.

Confab rose 2.3 percent to 3.92 reais at the close of trading in Sao Paulo, the most since Nov. 16, after earlier jumping 4.2 percent. The benchmark Bovespa index advanced 0.3 percent.

Confab said in a regulatory filing yesterday it’s in the final stages of negotiating a contract to supply Brazil’s state- owned oil company pipes and tubes for its Rota Cabiunas offshore gas pipeline.

The contract “would boost the company’s backlog with a profitable project,” Banco J. Safra SA analysts Cassio Lucin and Caroline Dalago wrote in a note to clients.

--Editors: Brendan Walsh, Richard Richtmyer

To contact the reporter on this story: Ney Hayashi in Sao Paulo at ncruz4@bloomberg.net

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


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