October 15, 2013 / 10:19 PM / in 4 years

EMERGING MARKETS-Brazil stocks up on reports Batista may leave OGX

* Brazil Bovespa rises 1.5 pct, Mexico IPC falls 1.62 pct

    MEXICO CITY, Oct 15 (Reuters) - Brazil's Bovespa stock index
shot up on Tuesday, lifted by a nearly 50 percent rise in the
shares of troubled oil company OGX following reports
that its beleaguered founder, Eike Batista, might cede control
to bondholders.
    Brazilian website InfoMoney reported that OGX creditors are
considering a proposal that would convert their bonds into
stock. The report, which cited an unnamed source close to OGX,
said that, as part of the deal, Batista would relinquish control
of the company he founded in 2007. 
    The company's shares rose 47.83 percent on the news, driving
gains in the Bovespa, which ended the day 1.5 percent
higher. Batista's mining company, MMX, also rose 
6.06 percent.
    The company announced late on Monday that Batista would cede
control of an MMX iron ore port to Dutch energy company
Trafigura Beheer BV and an Abu Dhabi sovereign wealth
fund in a $996 million deal. MMX will keep a 35 percent stake in
the port, which will receive additional investment from the
    But Mexican stocks fared poorly with concern over the U.S.
debt ceiling negotiations continuing to spook investors, leading
to a 1.62 percent decline in the IPC index.
    Shares of billionaire Carlos Slim's America Movil
telecommunications group drove losses, falling 1.38
    U.S. short-term bill rates rose and stocks slid on Wall
Street on Tuesday as U.S. Senate negotiations were suspended,
dimming the prospects for an agreement to end the U.S.
government's budget and debt impasse. 
    Chile's IPSA index edged up slightly to 3,853.04
    Latin America's key stock indexes at 2135 GMT:
 Stock indexes                                daily %      YTD %
                                 Latest        change     change
 MSCI LatAm                       3,432.20      -0.08      -9.63
 Brazil Bovespa                  54,980.64        1.5      -9.80
 Mexico IPC                      40,218.32      -1.62      -7.98
 Chile IPSA                       3,853.04       0.21     -10.42
 Chile IGPA                      18,975.76       0.19      -9.94
 Argentina MerVal                 5,285.28       0.82      85.17
 Colombia IGBC                   14,256.58       0.11      -3.12
 Peru IGRA                       15,503.33       0.23     -24.85
 Venezuela IBC                 1,888,130.1       2.63     300.51

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