Shares of Brazil's EBX Group companies battered by bad news
SAO PAULO Aug 15 (Reuters) - Shares of companies in the EBX Group founded by Brazilian tycoon Eike Batista tumbled in early Thursday trading as heavy losses at his oil company, a writedown of an iron-ore mine and a deal handing over his keystone port project signaled more turbulence ahead for his commodities empire.
Shares of port operator LLX Logistica SA, which U.S. investment group EIG Global Energy Partners is set to take over for an investment of 1.3 billion reais ($562 million), lost as much as 11 percent in early trading.
MMX Mineração e Metálicos SA fell as much as 8 percent after announcing a charge late on Wednesday as it reduced the recovery value of a mine in Corumba, Brazil.
Shares of oil producer OGX Petroleo e Gas Participações SA lost as much as 10 percent after it posted a loss of 4.7 billion reais late on Wednesday due to the plunging value of failed investments.
"The volatility on the news about LLX and MMX is being compounded by truly abysmal earnings for OGX," said Luis Gustavo Pereira, a strategist at Futura Corretora in Sao Paulo. "I think we'll continue to see a drop over the next few days."
The companies later pared losses in morning trading on the Sao Paulo stock exchange to drops of 7 percent for OGX and percent for MMX. LLX recovered to show a rise of 1.3 percent.
The LLX sale, announced late on Wednesday, marks an important step in Batista's efforts to shore up EBX, which was once valued at $60 billion.
But after a series of project delays, rampant assumption of debt and dwindling confidence in some of its main companies, the value of EBX's assets is now less than $5 billion. (Reporting by Brad Haynes and Lucas Ibérico-Lozada; Editing by Lisa Von Ahn)