Brasil Ecodiesel paces Bovespa Drop on Maeda takeover

Brasil Ecodiesel Industria e Comercio de Biocombustiveis e Oleos Vegetais SA fell the most on the Bovespa stock index after the company bought farm group Maeda SA Agroindustrial SA assets at a price higher than some analysts expected.

Rio de Janeiro-based Ecodiesel, Brazil’s biggest biodiesel maker, sank 5.4 percent to 1.05 reais at 10 a.m. New York time. The Bovespa benchmark dropped 1 percent.

Investors think “Maeda’s assets were not adequately valued” in the transaction, said Victor Martins, an analyst at Planner Corretora de Valores in Sao Paulo.

The incorporation of Maeda will boost Ecodiesel’s social capital by 320 million reais ($189.9 million) to 1.1 billion reais, the company said in a filing yesterday. The deal gave Maeda shareholders 33 percent of the new company.