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Friday, February 7, 2014

Brazil homebuilder Gafisa plans spinoff; shares jump, (NYSE: GFA)

Brazilian homebuilder Gafisa SA is looking to spin off its Tenda division, extending the group's divestitures after losing money for three years.Chief Executive Duilio Calciolari plans to leave the company after the 90-day process of establishing two separate corporate structures, he said in a Friday securities filing.Gafisa shares jumped as much as 7 percent in early trading after Calciolari told Reuters in a telephone interview that the idea behind the plan is to give investors a share in the separately listed Tenda for each share they hold in Gafisa."The synergies between Tenda and Gafisa are almost nothing, very little, with different supplier networks," he added.

Gafisa SA is a Brazil-based company engaged in the homebuilding and real estate operations. Shares of GFA traded higher by 4.23% or $0.11/share to $2.71. In the past year, the shares have traded as low as $2.22 and as high as $4.90. On average, 1576730 shares of GFA exchange hands on a given day and today's volume is recorded at 195791.