Helm Bank SA dropped to the lowest in three weeks after the president of Chile’s Corpbanca (CORPBANC) said his company won’t bid for a stake in the Colombian bank.
Shares dropped 4 percent to 475 pesos, the lowest close since June 5. The IGBC index gained 0.5 percent. Helm has rallied 54 percent this year, the biggest advance on the benchmark, as investors bet it will be targeted for an acquisition.
Corpbanca won’t bid for Helm, the company’s president Jorge Andres Saieh said in an interview published by Chile’s Diario Financiero yesterday. Corpbanca would look at the acquisition if it was priced at $250 million, or about a quarter of Helm’s current market capitalization, the newspaper quoted Saieh as saying. Corpbanca confirmed in an e-mail that the company isn’t participating in a Helm takeover.
“As the bank loses companies interested in an acquisition, the price should be pushed down,” said David Pelaez, an analyst at Bolsa y Renta brokerage in Medellin. Corpbanca had been mentioned in local press reports as a potential suitor. “It’s not clear how the sale process is going. It’s been going on for awhile and the context in Europe is less favorable now.”
Helm Bank has a market capitalization of 1.9 trillion pesos ($1.1 billion), according to data compiled by Bloomberg. The company said in an e-mail that it had no official comment on developments in the sale process.
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