Aracruz, Eletrobras, Molinos, Telmex: Latin Equity Preview

By William Freebairn and Paulo Winterstein

Oct. 6 (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 fell 3.6 percent on Oct. 3 to 2,807.42.

Argentina

Mirgor Sacifia (MIRG AF): Argentine automakers increased production 26 percent in September from a year earlier, the country's Automakers Association said in an Oct. 3 statement. Mirgor, which makes climate-control systems for vehicles, fell 0.8 percent to 129 pesos.

Molinos Rio de la Plata SA (MOLI AF) and Cresud SACIF y A (CRES AF): A conflict in Argentina over agricultural exports and taxes will continue on a ``long-term'' basis because the government is ``indifferent'' to the industry, farm group leader Alfredo de Angeli said at a televised rally in Gualeguaychu, Argentina on Oct. 3, as farmers began a six-day strike. Soybean oil exporter Molinos fell 0.6 percent to 9.75 pesos. Cresud, which farms soybeans and other crops, fell 0.9 percent to 3.32 pesos.

Brazil

Anhanguera Educacional Participacoes SA (AEDU11 BS): The Brazilian administrator of private universities was rated ``buy'' in new coverage at Fator Corretora. The education industry has ``enormous growth potential'' and Anhanguera is expected to grow at a rate above the average for the industry, analyst Jacqueline Lison wrote in an Oct. 3 note. Anhanguera fell 4.3 percent to 18 reais.

Aracruz Celulose SA (ARCZ6 BS): The eucalyptus-pulp maker may have its debt ratings lowered by Moody's Investors Service and Standard & Poor's, both of which have assigned the company the second-lowest investment-grade rating. Moody's said Oct. 3 it put its Baa2 rating under review, while S&P said it may lower Aracruz's rating from BBB. Aracruz plunged 25 percent to 4.85 reais.

Centrais Eletricas Brasileiras SA (ELET6 BS): Subsidiaries of Brazilian state-owned energy company Eletrobras won five of seven lots of transmission line rights, which will cost about 500 million reais ($245.3 million) to construct, electricity regulator Aneel said Oct. 3. The 30-year rights are for the construction, operation and maintenance of about 356 kilometers (223 miles) of lines and seven substations, the regulator said. Eletrobras fell 2 percent to 22.65 reais.

Votorantim Celulose & Papel SA (VCPA4 BS): Brazil's third- largest pulp and paper maker may have its debt rating raised by Moody's. VCP, which is acquiring rival Aracruz Celulose, had its Baa3 put on review for an upgrade, Moody's said in an Oct. 3 statement. Baa3 is the lowest investment grade rating. VCP fell 11 percent to 22.99 reais.

Colombia

Companhia Colombiana de Tejidos SA (COLTEJ CB): Directors of the Colombian textile company known as Coltejer approved sales representation contracts with U.S. and Mexican units of Grupo Kaltex SA, Coltejer wrote in a statement posted on the regulator's Web site on Oct. 3. It didn't give details. Coltejer was unchanged at 1.20 pesos.

Mexico

Grupo Modelo SAB (GMODELOC MM): Mexico's largest beermaker is in a ``weak'' negotiating position in a dispute with Anheuser- Busch Cos., which holds a 50 percent non-controlling share in Modelo, Credit Suisse Group AG said in a report e-mailed Oct. 3. Modelo is seeking arbitration over the U.S. brewer's sale to InBev NV. Modelo fell 5.7 percent to 43.11 pesos.

Telefonos de Mexico SAB (TELMEXL MM): Mexico's lower house of Congress may vote by year-end on a proposal to allow foreign companies to own majority stakes in landline telephone carriers, lawmaker Mauricio Ortiz Proal said in an interview last week. Telefonos de Mexico, the country's largest fixed-line phone company, fell 1.9 percent to 13.58 pesos.

Peru

Empresa Siderurgica del Peru SA (SIDERC1 PE): The Peruvian unit of Latin America's biggest steelmaker plans to sell as much as $300 million in bonds. Shareholders of the Lima-based company approved the bond sale in a meeting today, according to a filing with Peru's securities regulator. Siderurgica del Peru fell 2.2 percent to 2.20 soles.

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