April 16, 2009
Sadia may sell stocks; holds "weekly" Perdigao talks
Sadia SA, Brazil's second-largest foodmaker, said it is holding "weekly merger talks" with competitor Perdigao SA and may also sell shares or assets to shore up losses from wayward bets on the Brazilian currency.
Sadia Chairman Luiz Furlan said a decision about a merger, asset or share sale will likely be made by June. Though he declined to provide further details on potential assets or share, Furlan said the plan is to get "capital injection whatever it may be."
Sadia is facing pressure with its venture with Perdigao as debt payments loom, after currency-derivative bets led to a 2.04 billion-reais (US$930 million) fourth-quarter loss, according to Credit Suisse Group AG. Sadia abandoned a 3.9 billion-reais bid to take over Perdigao in 2006.
Banco Bradesco SA is assisting Sadia in the talks and UBS AGXX is representing Perdigao, Furlan said.