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Brookfield Soars in Brazil on Plan to Take Homebuilder Private

Feb. 17 (Bloomberg) -- Brookfield Incorporacoes SA, Brazil’s worst-performing homebuilder in the past year, surged to the highest since October as its biggest shareholder offered to buy the stock it doesn’t own and delist the company.

BRB Participacoes, a unit of Toronto-based Brookfield Asset Management Inc. that owns 39 percent of the Brazilian builder, will offer as much as 1.60 reais each for all outstanding voting shares, according to a regulatory filing after the close of the market on Feb. 14.

Brookfield jumped 19 percent to 1.47 reais at 1:24 p.m. in Sao Paulo, paring the loss over the past 12 months to 57 percent. It was the best performer on the benchmark Ibovespa gauge today, which dropped 0.4 percent.

“The tender offer represents a reasonable exit strategy relative to current share price levels,” Citigroup Inc. analysts Paola Mello and Dan McGoey wrote in a research note.

The controlling holder asked for a vote by investors on the tender offer at an extraordinary meeting, according to the filing. It said on Jan. 27 that it was “analyzing strategic alternatives” for Brookfield including a delisting.

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