(1888PressRelease)
May 02, 2009 - Sadia gained 11 percent to 4.18 reais on the Sao Paulo stock exchage at 9:55 a.m. New York time, the highest since Nov. 11. It’s up 11 percent this year, compared with a 23 percent rise in the benchmark Bovespa index.
Brazil’s government is brokering a possible takeover of Sadia by Perdigao and the National Bank for Economic and Social Development, known as BNDES, may finance the operation, Valor Economico reported today, without saying how it got the information. The government’s help will likely speed up negotiations, Brascan Corretora’s Denise Messer said.
“This substantially increases the possibility that the operation will go through,” Messer, an equity analyst at the Rio de Janeiro-based brokerage, said.
Sadia bets the real would continue a five-year rally last year led to a fourth-quarter loss of 2.04 billion reais ($925.3 million). The currency has slumped 29 percent from a nine-year high on Aug. 1.
Sadia’s decision about a merger, asset or share sale will likely be made by June, Sadia Chairman Luiz Furlan told reporters on April 15. He said the foodmaker was in “weekly” merger talks with Perdigao.
Perdigao and Sadia are Brazil’s biggest poultry exporters and makers of lasagnas, chicken nuggets, hamburgers and other processed foods.
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