Brasil Telecom, Cresud, Soriana, Vale: Latin Equity Preview

By William Freebairn and James Attwood

Oct. 16 (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 14 percent to 2,141 yesterday.

Argentina

Cresud SACIF y A (CRES AF): Argentine wheat production may plunge to the lowest since 1995 after a stretch of dry weather and lower reported fertilizer use, the government said. This year's harvest may yield as little as 9.5 million metric tons, 41 percent less than about 16 million tons a year ago, the Agriculture Secretariat said yesterday in an e-mailed statement. Cresud, which farms wheat, corn and soybeans among other crops, fell 6.5 percent to 2.31 pesos.

Brazil

Brasil Telecom Participacoes SA (BRTP4 BS): Brazil's third- biggest land-line telephone company said third-quarter profit rose 9 percent to 164.1 million reais ($73.6 million) as its client base increased. Brasil Telecom rose 2.4 percent to 16.49 reais.

Cia. Vale do Rio Doce (VALE5 BS): The world's biggest iron- ore producer signed a five-year contract with U.K.-based steelmaker Corus, a unit of India's Tata Steel Ltd., to supply 63 million tons of ore, Vale said yesterday in an e-mailed statement. Vale dropped 15 percent to 23.50 reais.

Chile

Empresa Nacional de Electricidad SA (ENDESA CC) and Enersis SA (ENERSIS CC): About 10.8 million shares in Endesa, the country's biggest generator, and 40 million shares in Enersis, its parent company, will be auctioned along with other stock at 9:15 a.m. local time today, the Santiago stock exchange wrote in a statement yesterday, without identifying the seller. The minimum price was set at yesterday's closing price, according to the statement. Endesa rose 0.3 percent to 722.59 pesos. Enersis slid 1.8 percent to 164.76 pesos.

Mexico

Controladora Comercial Mexicana SAB (COMERUBC MM): The owner of supermarkets and Costco stores in Mexico hired Credit Suisse AG to advise it on bankruptcy restructuring. Comercial Mexicana may present a financing plan in the next few weeks, the company said today in a statement to the Mexico City stock exchange. It filed for bankruptcy protection last week. The shares, suspended from trading yesterday in anticipation of the statement, gained 55 percent when last traded Oct. 14.

Organizacion Soriana SAB (SORIANAB MM): Mexico's second- largest retailer is unlikely to default on debt, Citigroup Inc. analyst Eduardo Estrada wrote in a research note e-mailed yesterday. The company can access bank debt and has cash on hand for short-term obligations, he wrote. Soriana fell 1.4 percent to 27.49 pesos.

To contact the reporters on this story: William Freebairn in Mexico City at wfreebairn@bloomberg.net; James Attwood in Santiago at jattwood3@bloomberg.net;