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Peru Atacocha says shareholders in sales talks

Thu Aug 28, 2008 7:40pm EDT

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LIMA, Aug 28 (Reuters) - The shareholders of Peruvian miner Atacocha (ATA.LM)(ATB.LM) are holding talks with investors to sell more than 50 percent of class A shares, the company said.

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Representatives at Atacocha, one of the country's leading zinc and lead producers, said the company did not know the identity of the possible buyers, a letter posted on Peru's securities regulator showed on Thursday.

"The operation could involve the transfer of more than 50 percent of Class A shares in the company," the letter said, stressing that a smaller stake might end up being sold in any deal.

Earlier this week, Atacocha shares surged 15 percent on speculation among traders that Brazilian conglomerate Votorantim wanted to buy a stake in the company.

Votorantim, which is working to consolidate its holdings in the sector, bought some 8 percent of Peruvian miner Milpo (MIL.LM)(MILi.LM) earlier this year, triggering a rise in the stock price.

Neither Votorantim nor Atacocha could immediately be reached to comment on the letter posted by Atacocha.

The Brazilian company is the world's third-largest producer of zinc and has mining operations across Latin America. (Reporting by Teresa Cespedes; Writing by Dana Ford; Editing by Andre Grenon)



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