May 28, 2009
Brazilian bank noncommittal on Brasil Foods financing
The Brazilian National Development Bank, or BNDES, is noncommittal on whether to participate in refinancing the company resulting from the planned merger of Sadia SA and Perdigao SA when it offers shares to the market, the local Estado newswire reported Wednesday (May 27).
Earlier this month, the two food giants announced they would merge to form BRF Brasil Foods, which would be one of the world's top exporters of poultry and processed foods.
"Brasil Foods will need to recapitalize its debts and this will be done through the market, [but] BNDES could participate in this if the operation offers us advantages, or we could not participate," BNDES President Luciano Coutinho said, according to Wednesday's Estado report.
Coutinho said that BRF Brasil Foods likely will get most of its financing needs met during the share offering, and is unlikely to need BNDES to participate as a buyer of the new shares.
