Braskem, Cemex, Gerdau, Lan Airlines: Latin Equity Preview

By William Freebairn and Paulo Winterstein

Oct. 10 (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 2.3 percent to 2,175.12 yesterday.

Brazil

Braskem SA (BRKM5 BS): Latin America's largest chemical company secured a five-year, $725 million loan guaranteed by future exports to refinance credits used to help purchase part of the Ipiranga oil and petrochemicals group. The loan will pay the London interbank offered rate plus 1.75 percentage points a year, the company said in a statement sent yesterday to Brazil's securities and exchange regulator. Braskem fell 5.7 percent to 7.45 reais.

Gerdau SA (GGBR4 BS): The largest Latin American steelmaker said its board approved the purchase of Canos Cordoba SRL for $6.9 million. The purchase of the Argentine steel distributor was approved in a meeting today, Porto Alegre, Brazil-based Gerdau said yesterday in a statement to the Brazilian securities regulator. Gerdau fell 2.8 percent to 14.38 reais.

Votorantim Celulose e Papel SA (VCPA4 BS): The Brazilian pulp maker merging with Aracruz Celulose SA said Chief Financial Officer Valdir Roque will move from Votorantim to Aracruz. Roque will replace Isac Zagury, who resigned as Aracruz CFO last month amid losses from derivative investments, VCP said yesterday in a statement to the Brazilian securities regulator. VCP fell 5.2 percent to 18.10 reais.

Chile

Lan Airlines SA (LAN CC): Chile's biggest air carrier said passenger traffic for September increased 12.3 percent as capacity rose 11 percent. As a result, the Santiago-based airline's so-called load factor increased 0.9 point to 76.9 percent, it said yesterday in a statement distributed by Business Wire. International passengers accounted for about 72 percent of total traffic, based on preliminary statistics. Lan fell 5.7 percent to 4,999.70 pesos.

Mexico

Cemex SAB (CEMEXCP MM): The largest cement maker in the Americas reduced net debt by $1.2 billion during the third quarter, helping it meet a creditor requirement. Cemex ``slightly exceeded'' third-quarter financial forecasts it gave Sept. 11, the company said in a statement e-mailed yesterday. Net debt was 3.4 times earnings before interest, taxes, depreciation and amortization, just below the 3.5 times in a creditor covenant. Cemex fell 15 percent to 10.52 pesos.

Controladora Comercial Mexicana SAB (COMERUBC MM): The Mexican supermarket operator filed for bankruptcy reorganization in Mexico yesterday after failing to sell commercial paper to refinance borrowing. Comercial Mexicana fell 44 percent to 8.78 pesos on Oct. 8. Trading in the shares was halted yesterday pending news.

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.