Cosan -15% in two days after disclosing Vale stake with 'no clear synergies'

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Cosan (NYSE:CSAN) -6.8% in Monday's trading and plunging 15% in two sessions after disclosing it acquired a 4.9% stake in Vale (NYSE:VALE) common shares, with plans to add another 1.9% holding in the one of the world's largest mining companies if approved by Brazilian competition authorities.

Credit Suisse analysts Regis Cardoso and Marcelo Gumiero said Cosan (CSAN) will try to exert influence on Vale (VALE) and seek a board seat, but they say the conglomerate has no clear synergies with Vale (VALE).

Whether or not the acquisition adds value for Cosan (CSAN) will depend on risk exposure, along with the impact of the leverage and finance costs, the analysts said.

Vale (VALE) may be "one of the most cheaply valued companies on the market," and it offers a nearly 10% dividend yield, Cavenagh Research writes in an analysis published recently on Seeking Alpha.