PBR - Brazil's Braskem attracts Ultrapar takeover interest - report
Braskem (NYSE:BAK) +2.4%, rising to its highest level of the day, following a report in Estado de S. Paulo that Ultrapar Participacoes (NYSE:UGP) is interested in acquiring the Brazilian petrochemical company. Goldman Sachs analysts say such a transaction could add value - depending on the pricing - but with limited room for synergies, given the limited overlap of Braskem (BAK) with Ultrapar's (UGP) fuel distribution, gas distribution and liquid bulk storage businesses. Goldman reiterates its preference for Petrobras (PBR) among South American energy stocks given its attractive valuation and lower dependence on Brazil's weak macro environment. Braskem's (BAK) "green potential is an area that offers tremendous promise and... is heavily overlooked in its valuation and growth prospects," Stocks Telegraph writes in a bullish analysis newly published on Seeking Alpha.
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Brazil's Braskem attracts Ultrapar takeover interest - report