EMERGING MARKETS-Brazil stocks up on reports Batista may leave OGX

Reuters

* Brazil Bovespa rises 1.5 pct, Mexico IPC falls 1.62 pct

MEXICO CITY, Oct 15 (Reuters) - Brazil's Bovespa stock index

shot up on Tuesday, lifted by a nearly 50 percent rise in the

shares of troubled oil company OGX following reports

that its beleaguered founder, Eike Batista, might cede control

to bondholders.

Brazilian website InfoMoney reported that OGX creditors are

considering a proposal that would convert their bonds into

stock. The report, which cited an unnamed source close to OGX,

said that, as part of the deal, Batista would relinquish control

of the company he founded in 2007.

The company's shares rose 47.83 percent on the news, driving

gains in the Bovespa, which ended the day 1.5 percent

higher. Batista's mining company, MMX, also rose

6.06 percent.

The company announced late on Monday that Batista would cede

control of an MMX iron ore port to Dutch energy company

Trafigura Beheer BV and an Abu Dhabi sovereign wealth

fund in a $996 million deal. MMX will keep a 35 percent stake in

the port, which will receive additional investment from the

group.

But Mexican stocks fared poorly with concern over the U.S.

debt ceiling negotiations continuing to spook investors, leading

to a 1.62 percent decline in the IPC index.

Shares of billionaire Carlos Slim's America Movil

telecommunications group drove losses, falling 1.38

percent.

U.S. short-term bill rates rose and stocks slid on Wall

Street on Tuesday as U.S. Senate negotiations were suspended,

dimming the prospects for an agreement to end the U.S.

government's budget and debt impasse.

Chile's IPSA index edged up slightly to 3,853.04

points.

Latin America's key stock indexes at 2135 GMT:

Stock indexes daily % YTD %

Latest change change

MSCI LatAm 3,432.20 -0.08 -9.63

Brazil Bovespa 54,980.64 1.5 -9.80

Mexico IPC 40,218.32 -1.62 -7.98

Chile IPSA 3,853.04 0.21 -10.42

Chile IGPA 18,975.76 0.19 -9.94

Argentina MerVal 5,285.28 0.82 85.17

Colombia IGBC 14,256.58 0.11 -3.12

Peru IGRA 15,503.33 0.23 -24.85

Venezuela IBC 1,888,130.1 2.63 300.51

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