Arequipa, Cosan, M. Dias, Paranapanema: Latin Equity Preview

By William Freebairn and Alexander Ragir

Sept. 12 (Bloomberg) -- The following companies may have unusual price changes today in Latin America trading. Stock symbols are in parentheses, and share prices are from the previous close. Preferred shares are usually the most-traded class of stock in Brazil.

The MSCI Latin America Index rose 1.3 percent yesterday to 3,420.56.

Brazil

Banco do Brasil SA (BBAS3 BS): Latin America's largest bank by assets said late yesterday in a filing with Brazil's securities regulator that it plans to acquire state-controlled Banco do Estado de Santa Catarina SA and its mortgage unit for 685 million reais ($382.7 million). Banco do Brasil rose 1.6 percent to 22.60 reais.

Cosan SA Industria e Comercio (CSAN3 BS): The world's biggest sugar-cane processor posted a net loss of 58.1 million reais ($32.2 million) in the quarter that ended July 31, compared with a profit of 13.7 million reais a year earlier, Cosan said in a statement to the Brazilian stock regulator. The loss was wider than the 27 million-real average forecast by four analysts in a Bloomberg survey. Cosan rose 9.2 percent to 19 reais.

M. Dias Branco SA Industria & Comercio de Alimentos (MDIA3 BS): Brazil's biggest maker of pasta and cookies plans to buy back up to 7.3 percent of its shares on the market over the next year. The board approved the repurchase of up to about 2.66 million voting shares, Fortaleza, Brazil-based M. Dias said in a filing posted yesterday on Brazil's securities regulator Web site. M. Dias fell 1 percent to 19 reais.

Paranapanema SA (PMAM3 BS): The Brazilian copper and tin producer that was in talks to sell units to Cia. Vale do Rio Doce converted bonds into 341 million reais ($189 million) worth of voting shares. The company's board approved the conversion of bonds into about 75 million new shares, raising the company's capital stock by 23 percent to 1.82 billion reais, Paranapanema said yesterday in a filing posted on Brazil's securities regulator Web site. Paranapanema fell 7 percent to 4.71 reais.

Chile

Compania de Telecomunicaciones de Chile SA (CTCA CC): Telefonica SA, Europe's second-largest telephone operator, will spend up to $985 million to buy shares it doesn't already own in Telefonica Chile, as the country's biggest fixed-line carrier is known. Telefonica will offer 1,000 pesos a share for Telefonica Chile's series A shares, it wrote in an e-mailed statement after the close of Chilean trading yesterday. That's 25 percent higher than Telefonica Chile's closing price of 801 pesos.

Mexico

Alsea SAB (ALSEA* MM): The operator of Domino's Pizza and Starbucks Coffee shops in Mexico said it hired the local unit of UBS AG to make a market in its shares. UBS has agreed to offer to buy and sell shares of Alsea as part of a plan to boost trading in the stock, the restaurant operator said in a statement e- mailed yesterday. Alsea fell 1.9 percent to 10.34 pesos.

Peru

Corp. Aceros Arequipa (CORA PE): The Peruvian steelmaker has no formal offers from any Brazilian company to acquire a stake and has not received a direct proposal for an alliance from Chile's Cap SA, Arequipa reported in a filing yesterday it said was a response to an inquiry by regulators. Arequipa rose 1.7 percent to 4.17 soles.

To contact the reporter on this story: William Freebairn in Mexico City at wfreebairn@bloomberg.net; Paulo Winterstein in Sao Paulo at pwinterstein@bloomberg.net.