Bloomberg News

Batista’s Coal Unit CCX Slumps in First Trading Week: Rio Mover

June 01, 2012

CCX Carvao da Colombia SA, the coal unit of Brazilian billionaire Eike Batista, slumped the most since it started trading last week as investors flee pre-operational companies amid a worsening crisis in Europe.

Shares (CCXC3) of Rio de Janeiro-based CCX dropped 17 percent to 4.95 reais at the close in Sao Paulo today, the most since the company started trading May 25. The stock has had a 42 percent loss since then.

CCX, which plans to invest $5.5 billion to develop a coal mine, a railway and a port project in Colombia to begin production in 2017, was spun off from Batista’s power-generating unit MPX Energia SA before the listing. Investors in Brazil are more reluctant to buy pre-operational companies amid a worsening scenario in Europe, said Pedro Galdi, equity strategist at brokerage firm SLW Corretora in Sao Paulo.

“Eike Batista’s companies are still junior and they gained a speculative profile so when they gain, it is more than the index and the same when they fall,” Galdi said in a telephone interview.

MPX declined 3.9 percent to 33.30 reais today to the lowest since Nov 24.

To contact the reporters on this story: Juan Pablo Spinetto in Rio de Janeiro at jspinetto@bloomberg.net;

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net


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