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Shares in Brazil's CCR soar after CDPQ reported seeking a stake

Kitco News

SAO PAULO, Dec 6 (Reuters) - Shares in Brazilian infrastructure company CCR SA (CCRO3.SA) soared on Monday after a newspaper said Canadian pension fund Caisse de depot et placement du Quebec (CDPDA.UL) is looking to buy conglomerate Andrade Gutierrez's stake in the firm.

O Globo columnist Lauro Jardim reported on Sunday that CDPQ mandated two banks - Bank of America and Santander - for the deal, adding that the pension fund also aims to potentially take the company private in the future.

Shares in CCR were up 6.4% to 15.10 reais in early afternoon trading in Sao Paulo, outperforming the broader Bovespa index (.BVSP), which rose 2%.

Analysts at XP Investimentos said the deal would be positive for CCR, as it would eliminate selling pressure on its shares and enhance corporate governance, noting that a construction company would be replaced by a financial player as shareholder.

XP added that the possibility of CDPQ taking CCR private could represent an upside to minority shareholders due to tag-along rights.

Last month, Andrade Gutierrez canceled a deal with Brazilian asset manager IG4 to sell its 14.86% stake in CCR, saying certain preconditions were not met.

CCR did not immediately respond to Reuters request for comments.

Andrade Gutierrez and CDPQ declined to comment.

Reporting by Peter Frontini and Gabriel Araujo; Editing by Ed Osmond and Marguerita Choy
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