Cimpor-Cimentos de Portugal SGPS SA dropped a fifth day in Lisbon trading to the lowest price in three years after Camargo Correa SA gained control of Portugal’s biggest cement maker.
Cimpor (CPR) declined as much as 14 percent to 3.26 euros, the lowest since March 2009, and traded at 3.55 euros at 12:33 p.m. in the Portuguese capital. The stock fell 26 percent yesterday. The shares were excluded from Portugal’s PSI-20 benchmark index last week.
Camargo raised its stake last week to about 95 percent after bidding 5.50 euros a share on March 30 to buy the Cimpor stock it didn’t already own. Camargo hasn’t decided whether to remove Cimpor from trading in Lisbon, Jose Edison, president of Camargo’s Intercement unit, said on June 20.
Standard & Poor’s lowered Cimpor’s long-term corporate credit rating today to the non-investment grade of BB from BBB-.
“We assess Camargo Correa as having weaker credit quality than Cimpor and believe that Cimpor will be fully incorporated into Camargo’s cement operations,” S&P said. “This gives Camargo direct access to Cimpor’s assets, along with control of cash and dividend payouts.”
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