Bancolombia, Bimbo, CSN, Lan, Petrobras: Latin Equity Preview

By William Freebairn and Alexander Ragir

Sept. 11 (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 0.2 percent yesterday to 3,375.93.

Brazil

Cosan SA Industria & Comercio (CSAN3 BS): The world's biggest sugar-cane processor, signed a contract to sell electricity generated from biomass to Rede Comercializadora de Energia SA that's worth 489 million reais ($272 million). Cosan fell 5.4 percent to 17.40 reais.

Perdigao SA (PRGA3 BS): Brazil's biggest food company may have its Ba1 debt rating cut by Moody's Investors Service after profit margins fell and costs rose. Moody's lowered the outlook on Perdigao's rating to ``negative'' from ``stable,'' the ratings company said yesterday in a statement. Perdigao's Ba1 rating is one level below investment grade. Perdigao rose 5.6 percent to 41.61 reais.

Petroleo Brasileiro SA (PETR4 BS): Brazil's state-controlled oil company said yesterday it has found an estimated 3 billion to 4 billion barrels of recoverable light crude oil in an offshore field in the Santos Basin in Brazil. Petrobras, as the company is known, and its partners, BG Group Plc. and Galp Energia SGPS SA, found the oil in its Iara well in the BM-S-11 block off the coast of Rio de Janeiro. Petrobras owns 65 percent of the field and operates it, BG owns 25 percent and Galp owns 10 percent. Petrobras rose 1.2 percent to 28.68 reais.

Cia. Siderurgica Nacional SA (CSNA3 BS): CSN was upgraded to ``buy'' from ``underperform'' by Merrill Lynch & Co. on expectations Brazil's third-largest steelmaker may sell its iron- ore unit for $4.1 billion more than investors expect. CSN gained 4.2 percent to 44.50 reais.

Telemar Norte Leste SA (TMAR5 BS): Telemar Participacoes SA, the owner of Telemar Norte Leste, Brazil's largest telephone company, delayed indefinitely a plan to sell about $1.5 billion of bonds intended to help finance its acquisition of rival Brasil Telecom Participacoes SA (BRTP3 BS). Telemar gained 1 percent to 78.81 reais. Brasil Telecom climbed 0.4 percent to 52.70 reais.

Chile

Lan Airlines SA (LAN CC): Analysts at Banchile Inversiones, BCI Corredor de Bolsa and Banco Santander reiterated ``buy'' recommendations for Chile's biggest air carrier in separate research notes yesterday after the airline reported a 16 percent jump in passenger traffic in August. Lan fell 0.8 percent to 6,249.9 pesos.

La Polar SA (LAPOLAR CC): The Santiago-based department store operator may rally 60 percent to 2,950 pesos in the next 12 to 18 months, while its earnings before interest, taxes, depreciation and amortization may increase 26 percent this year, Banchile Inversiones analysts wrote in a note to clients yesterday, reiterating a ``buy'' rating. La Polar rose 0.8 percent to 1,845 pesos.

Colombia

Bancolombia SA (BCOLO CB): Unconsolidated profit rose 9.9 percent to 93.8 billion pesos ($45.6 million) in August from 85.4 billion pesos in July, Colombia's biggest lender wrote in a statement posted on the regulator's Web site yesterday. In the first eight months of this year, profit increased 51 percent to 764 billion from the same period last year, the Medellin-based banks said. Bancolombia fell 0.6 percent to 16,640 pesos.

Mexico

Grupo Bimbo SAB (BIMBOA MM): Mexico's biggest baker of bread was raised to ``buy'' from ``hold'' by Citigroup Inc., which cited falling wheat prices. Earnings per share may increase 20 percent or more next year and in 2010, analysts led by Eduardo Estrada wrote in a research note e-mailed yesterday. Bimbo rose 3 percent to 68.45 pesos.

Grupo Elektra SA (ELEKTRA* MM): Mexico's largest electronics retailer plans to begin selling motorcycles in Brazil next year and may build an assembly plant there by 2010, the chief executive officer of its motorcycle unit said. Elektra, based in Mexico City, has plans to open 1,500 stores in Brazil over the next five years to make the country its largest market, Alberto Tanus said yesterday. Elektra rose 3.8 percent to 398.91 pesos.

Fomento Economico Mexicano SAB (FEMSAUBD MM): Latin America's largest beverage company expects to pay for a $190 million soccer stadium with advance sales of premium seats, advertising and stadium concessions, project manager Tonatiuh Mejia said in a phone interview yesterday. Femsa, as the company is known, does not expect to fund any part of the new stadium, which will be used by its Rayados professional soccer team, Mejia said. Femsa fell 4.8 percent to 46.08 pesos.

To contact the reporter on this story: William Freebairn in Mexico City at wfreebairn@bloomberg.net; Alexander Ragir in Rio de Janeiro at aragir@bloomberg.net;