Shares of Brazilian buyout firm Laep Investments (MILK11.SA) soared Thursday on reports that the dairy producer it controls is in talks to sell itself to Italian peer Parmalat (PLT.MI) in an all-stock deal. Shares of Sao Paulo-based Laep, controlled by investor Marcos Elias, rose as much as 7.4 percent to 0.58 reais in early trading. The gain is Laep's biggest since a 7.7 percent jump on Jan. 14. Two Brazilian newspapers reported on Thursday that Parmalat, seeking to fend off a takeover by a bigger rival, was holding merger talks with Brazilian peer Lacteos Brasil in a deal valued at up to 2.5 billion euros ($3.4 billion). Lacteos Brasil is controlled by Laep.
Source
