Gol gains as Bradesco sees 50% rally in potential Delta takeover

Gol Linhas Aereas Inteligentes, Brazil’s second-biggest airline, climbed after Banco Bradesco SA said the stock could rally as much as 50% should the company become a takeover target for Delta or Azul. American depositary receipts surged as much as 12% to 30 US cents Wednesday, and closed at 28c in New York. The airline also outperformed the Ibovespa stock gauge, which joined a tumble in emerging markets. Burdened by a deep recession in Latin America’s largest economy and ballooning losses, Gol has plunged 95% in the past 12 months. Given the grim situation, Brazil may lift restrictions on foreign capital in the airline industry, which could accelerate a potential deal with Delta or Azul, according to Victor Mizusaki, an analyst at the investment banking unit of Bradesco. Delta currently has a 9.5% stake in Gol, below the 20% limit. “A potential M&A deal with Delta and Azul Airlines, combined with earnings recovery, could boost the share price performance,” Mizusaki, who rates the local shares a buy, said in a note to clients.<br/>