UPDATE 1-Brazil's Kroton mulls all-stock purchase of rival Estacio

jueves 2 de junio de 2016 10:01 GYT
 

(Adds rise in companies' share prices after takeover plan)

BRASILIA, June 2 (Reuters) - Brazil's private education company Kroton Educacional SA said Thursday it was considering an all-stock purchase of rival Estacio Participacoes SA.

Kroton, the world's biggest private education company, said in a securities filing that it had hired Itau BBA and law firm Barbosa Müssnich Aragao to advise on this possible move.

Common shares of Estacio rose 16 percent after Kroton's announcement. Kroton's common shares were trading 10 percent higher.

In April, Morgan Stanley & Co analysts said Brazil's largest for-profit college operator could buy rivals to expand in the country's north and northeast regions, if the outlook for federally funded student credit improves and the escalating political crisis eases.

(Reporting by Alberto Alerigi Jr., Writing by Silvio Cascione and Reese Ewing; Editing by Bernadette Baum and W Simon)