CSAN - Cosan -15% in two days after disclosing Vale stake with 'no clear synergies'

Cosan ( NYSE: CSAN ) -6.8% in Monday's trading and plunging 15% in two sessions after disclosing it acquired a 4.9% stake in Vale ( NYSE: VALE ) common shares, with plans to add another 1.9% holding in the one of the world's largest mining companies if approved by Brazilian competition authorities.

Credit Suisse analysts Regis Cardoso and Marcelo Gumiero said Cosan ( CSAN ) will try to exert influence on Vale ( VALE ) and seek a board seat, but they say the conglomerate has no clear synergies with Vale ( VALE ).

Whether or not the acquisition adds value for Cosan ( CSAN ) will depend on risk exposure, along with the impact of the leverage and finance costs, the analysts said.

Vale ( VALE ) may be "one of the most cheaply valued companies on the market," and it offers a nearly 10% dividend yield, Cavenagh Research writes in an analysis published recently on Seeking Alpha .

For further details see: