Value investors call bottom to Brazilian plunge

Joe Leahy and John Paul Rathbone – Financial Times, 9/13/2015

Value investors with strong stomachs and deep pockets are calling a bottom to Brazil’s plummeting markets, despite an economic and political crisis which could see the President impeached and last week led to the country’s credit rating being downgraded to junk.

Multinationals such as British American Tobacco and Spanish construction conglomerate Abertis are among those taking advantage of depressed Brazilian asset prices to take locally-listed subsidiaries private. Brazil’s bourse has fallen 36 per cent in dollar terms this year.

“It’s a vote of confidence in the underlying business,” said Romas Viesulas, of Nau Securities in London, of the trend towards buying out minority shareholders and delisting local companies.

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