Bloomberg reported that Usinas Siderurgicas de Minas Gerais SA gained the most in two months after Ternium SA said it's in talks to buy a stake.

Voting shares of Usiminas, as the company is known, jumped as much as 7.3% in Sao Paulo trading, the most intraday since September 9th 2011. The stock rose 2% to BRL 23.72 at 2:24 PM local time. American depositary receipts of Ternium fell 11% to USD 22.50 in New York.

Ternium offered to pay BRL 40 a share to buy a 26% voting stake in Usiminas from Camargo Correa SA and Grupo Votorantim.

Ternium confirmed it's in talks with Usiminas' controlling group to buy a stake. The company said it hasn't made any final decision on the potential transaction.

Mr Victor Penna, an analyst at Banco do Brasil SA, said that "Speculation about a possible takeover has been around for a while, and maybe the controlling shareholders will decide that now is a good time to sell."

(Sourced from Bloomberg)