JBS to sell US$2 billion of bonds

JBS SA, the world's largest beef producer, plans to sell US$2 billion of convertible bonds to pay for the acquisition of Pilgrim's Pride and Bertin SA.

The bonds will be convertible into 20-25% of the shares in JBS's US unit, or into JBS SA shares. The company said it is in ''advanced talks'' with a potential investor who may buy all the bonds.

JBS is raising cash to pay for the US$800 million acquisition of Pilgrim's Pride and fund a US$2 billion distribution network.

In September, JBS stated its intention for a US$2.5 billion private share sale and to price a US$2 billion initial public offering for the US unit in January.