July 1, 2001
A chill settled over the Latin American equity markets during the first half of this year. No new issues came to market and the largest deal was a secondary offering in June of $652 million in Embraer stock. Only a June share buyback by Mexico's Grupo Bimbo - an unusual corporate gesture at enhancing value - generated any enthusiasm in Latin America's equity markets.
However from the perspective of minority shareholders in Latin American companies, small but symbolic developments in the last six months have added some buzz to an otherwise disappointing season for Latin equity activity. Brazil is launching a new stock exchange for companies that adopt the highest corporate governance st
International investors are no longer interested in small, illiquid stocks. They want large companies with global ambitions. The trouble is, there are few Latin American companies that qualify.