Madeco SA (MADECO), the Chilean copper wire producer, headed toward an eight-month high on speculation the controlling Luksic family may be increasing its stake as the company’s board considers a breakup.
Madeco advanced 3.8 percent to 20.5 pesos at 11:02 a.m. in Santiago, the highest price on a closing basis since May. Traded volume reached 674 million shares, 9.3 percent of the stock outstanding, or about about 176 times the daily average over the past three months.
“It may be that the Luksices are buying stocks from small- cap funds before its planned split of the company,” German Guerrero, a partner at brokerage and asset management firm MBI Servicios Financieros in Santiago, said in a phone interview.
Quinenco SA (QUINENC), the holding company of the heirs of Andronico Luksic, controls Santiago-based Madeco with a 55.4 percent stake, according to Quinenco’s website. Pilar Rodriguez, an investor relations officer at Quinenco, didn’t immediately respond to a phone call seeking comment.
Madeco’s board has instructed management to begin studying the steps required to separate the company into two, according to a filing with regulators on Jan. 7. One part would contain Madeco’s holding in French wire producer Nexans SA. (NEX) The second would consist of interests in industrial units such as packaging company Alusa SA and metal tubes producer Madeco Mills SA.
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