Banco do Brasil, Cemig, Chocolates, Vitro: Latin Equity Preview

By Paulo Winterstein and James Attwood

July 7 (Bloomberg) -- The following stocks may have significant gains or losses in Latin American markets. Symbols are in parentheses after company names, and stock prices are from the last session.

The MSCI index of Latin American shares rose 0.2 percent to 4,375.98 July 4. In Brazil, preferred shares are the most commonly traded class of stock.

Brazil

Banco do Brasil SA (BBAS3 BS), Cia. de Seguros Alianca do Brasil (CSAB3 BS) and Cia. de Participacoes Alianca da Bahia (PEAB3 BS): Latin America's biggest bank by assets agreed to buy the remaining shares in insurance company Cia. de Seguros Alianca do Brasil it doesn't already own. Banco do Brasil will buy 60 percent of Seguros Alianca's voting shares from holding company Cia. de Participacoes Alianca da Bahia, the bank said July 4 in a regulatory filing, without disclosing how much it would pay for the stake. Banco do Brasil added 0.8 percent to 23.80 reais, while Seguros Alianca fell 3.7 percent to 26 reais. Alianca da Bahia was unchanged at 34.50 reais when it last traded July 2.

Cia. Energetica de Minas Gerais (CMIG4 BS) and Light SA (LIGT3 BS): Cemig, as Brazil's biggest combined power producer and distributor is known, and Light, Brazil's second-biggest electricity distributor, plan to develop electricity-generating projects in Brazil. Light will control 51 percent of the projects and Cemig will own the rest, according to a statement posted July 4 on the Brazilian securities regulator's Web site. The projects will have the capacity to generate at least 300 megawatts of electricity, the companies said in the statement. Belo Horizonte, Brazil-based Cemig added 1 percent to 37.01 reais. Rio de Janeiro-based Light rose 6.3 percent to 21.92 reais.

Empresa Brasileira de Aeronautica SA (EMBR3 BS): The world's fourth-largest airplane maker received an order from India's government for three ERJ 145 planes equipped with surveillance equipment. The Airborne Early Warning & Control planes, used for intelligence, surveillance and reconnaissance, will be delivered beginning in 2011, the company known as Embraer said July 4 in an e-mailed statement. Sao Jose dos Campos, Brazil-based Embraer, which didn't disclose the value of the order, added 0.4 percent to 9.64 reais.

Colombia

Grupo Nacional de Chocolates SA (CHOCOLA CB): A unit of Colombia's biggest food company raised $40 million in 10-year bonds in Peru to restructure short-term debt, the company wrote in a July 4 regulatory filing. Chocolates rose 0.7 percent to 15,000 pesos.

Mexico

Vitro SAB (VITROA MM): Mexico's National Banking and Securities Commission ordered Citigroup Inc.'s Mexican unit to hand over information about shares of Mexico's largest glassmaker it may have bought. Banamex violated Vitro's bylaws that say foreign companies or foreigners can't own its shares by buying a 14.94 percent stake, Monterrey-based Vitro said July 4 in a statement, citing the commission's letter to both companies. Foreign companies and individuals are allowed to own its American depositary receipts, the company said June 26. Vitro fell 2.3 percent to 16.80 pesos.

To contact the reporters on this story: Paulo Winterstein in Sao Paulo at pwinterstein@bloomberg.net; James Attwood in Santiago at jattwood3@bloomberg.net.