Banco do Brasil, Telemar, Vale, Vapores: Latin Equity Preview

By [bn:PRSN=1] William Freebairn [] and James Attwood

Nov. 21 (Bloomberg) -- The following companies may have unusual price changes today in Latin America trading. Stock symbols are in parentheses and share prices reflect the previous close.

The MSCI Latin America Index fell 2.2 percent yesterday to 1,781.88. Brazil's markets were closed yesterday for a holiday. Peruvian markets are closed today for a holiday.

Brazil

Banco do Brasil SA (BBAS3 BS): Brazil's largest government- controlled lender is buying a majority stake in Banco Nossa Caixa SA (BNCA3 BS) for 5.39 billion reais ($2.25 billion) in cash, the companies said in a statement yesterday. That is 70.63 reais a share, 38 percent more than Nossa Caixa's closing price Nov. 19. Banco do Brasil fell 0.6 percent to 13.32 reais on Nov. 19.

Cia. Vale do Rio Doce (VALE5 BS): U.S. shares of Brazil's biggest iron-ore miner fell to the lowest in three years in New York trading yesterday when Brazilian markets were closed. JPMorgan Chase & Co. said in a report dated Nov. 19 that iron- ore prices may fall 30 percent, wider than an earlier forecast for a 10 percent drop. Separately, Folha de S. Paulo Vale fell 2.8 percent to 22.50 reais Nov. 19.

Telemar Norte Leste SA (TMAR5 BS): The Brazilian phone company that agreed to buy Brasil Telecom Participacoes SA said Nov. 19 it will ask for shareholder approval to sell 3.5 billion reais ($1.5 billion) in non-convertible bonds. Telemar fell 0.4 percent to 50.70 reais on Nov. 19.

Chile

Cia. Sudamericana de Vapores SA (VAPORES CC): Latin America's biggest container ship company had its 'BB+' long-term corporate credit and senior unsecured debt ratings put on negative watch by Standard & Poor's Rating Services, which cited ``a deeper-than-expected deterioration in the global container ship market.'' Vapores fell 3.2 percent to 460 pesos.

Mexico

Desarrolladora Homex SAB (HOMEX* MM): The number of houses to be built in 2009 may grow 7 percent or 8 percent, slowing from ``double-digit growth'' of previous years, said Victor Manuel Borras, chief executive officer of Mexican government housing agency Infonavit, in a Bloomberg Television interview yesterday. Homex, the country's biggest builder, fell 10 percent to 30.87 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