Bloomberg News

Batista’s CCX Falls to Record After Delisting U-Turn: Rio Mover

June 20, 2013

CCX Carvao da Colombia SA (CCXC3), the smallest of Eike Batista’s publicly traded companies, slumped to a record low after the billionaire canceled plans to take the coal business private.

CCX dropped 47 percent to 68 centavos at 11:56 a.m. in Sao Paulo, the lowest since it began trading in May 2012. The stock, which traded at more than 10 times its three-month daily average volume, has declined 83 percent this month compared with a 14 percent fall in the Ibovespa small cap index.

Batista, who last year lost the title of Brazil’s richest person, in January offered as much as 4.31 reais a share for Rio de Janeiro-based CCX, payable in stock of other public companies he controls. Brazil’s stock market “doesn’t represent an ideal environment to sustain the current terms” of his offer, Batista said in a statement late yesterday. He said he may reassess the deal if market conditions improve.

Batista, whose net wealth dropped 59 percent this year, is selling assets, restructuring debt at his holding company EBX Group Co. and trimming projects as his six publicly traded units accumulate losses. OGX Petroleo & Gas Participacoes SA, the billionaire’s oil-producing company, fell 2.6 percent today to 76 centavos, extending its decline in the past year to 92 percent.

LLX Logistica SA (LLXL3), Batista’s port-developer unit, dropped as much as 12 percent today and was the second-worst performer on Brazil’s benchmark Ibovespa index, which declined 2.4 percent.

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

To contact the editor responsible for this story: James Attwood at jattwood3@bloomberg.net


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