Chile stocks rise on electric sector, telecom CTC
SANTIAGO, April 13 (Reuters) - Chilean stocks ended higher on Tuesday on gains in the high profile electric sector and benchmark Cia. de Telecomunicaciones de Chile (CTC) (NYSE:CTC - news) , traders said.
The IPSA (^IPSA - news) index of the leading stocks rose 0.77 percent to end at 124.95 points and the broader IGPA (^IGPA - news) gauge added 0.44 percent to end at 4392.93 points.
The ADRIAN (^ADRIAN - news) index, which reflects the local share prices of all Chilean companies with American Depositary Receipts, moved up 0.47 percent to 1032.03 points.
In the electric sector, Latin American's largest private electric holding, Enersis (NYSE:ENI - news), advanced 0.66 percent to 232.02 pesos, and its power producing unit, Endesa- Chile (NYSE:EOC - news), gained 0.63 percent at 239.50 pesos on anticipation that Spanish utility Endesa (NYSE:ELE - news) would launch a tender offer to buy part of the Chilean generator, traders said.
Confirming the speculation, shortly after the market closed, Enersis, majority owned by Endesa-Spain, said it would offer to buy 29.7 percent of Endesa-Chile at 305 pesos per share.
Enersis also said it would ask shareholders to approve a $1 billion capital increase.
Enersis' offer could compete with one expected one by U.S.- based Duke Energy Corp. (NYSE:DUK - news), which intends to launch a $2.1 billion tender offer for 51 percent of the generator at 250 pesos per share.
In the telecommunications sector, CTC's B series jumped 4.69 percent to 2,010 pesos and its A series rose 1.46 percent to 3,125 pesos because its prices looked attractive, traders said.
Also in the telecom sector, but on the down side, Telex Chile (NYSE:TL - news) plunged 13.24 percent to 295 pesos because the company still has not reached a complete agreement with creditor banks to end its long-standing financial problems, traders said.
Leap Wireless International, Inc. (Nasdaq:LWIN - news) on Tuesday said it will double its ownership in Chilesat Telefonia Personal SA to 100 percent for $50 million. It will buy the stake from Telex and its affiliate, Chilesat SA.
Forty-six stocks rose, 35 fell and 20 ended unchanged. Volume was low at $18.5 million, up from Monday's $11.4 million.
The peso ended stronger at 481.30/481.60 per dollar compared with the previous session's 482.50/482.80 on an inflow of dollars and expected inflows in the future from a tender offer for Endesa-Chile and a sale of part of Chile's Chilquinta Energia SA (Enerquinta) electric distributor, dealers said.
Southern California's Sempra Energy (NYSE:SRE - news) and Public Service Enterprise Group (NYSE:PEG - news), based in New Jersey, said on Tuesday they will jointly buy 90 percent of Enerquinta for $830 million.
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