Itau Unibanco Holding SA (ITUB4), Latin America’s biggest lender by market value, said it may give up its plan to buy out Redecard SA (RDCD3)’s minority shareholders for 11.8 billion reais ($6.19 billion) after Lazard Asset Management LLC asked for a new appraisal of Brazil’s second-biggest card processor.
Itau reaffirmed its offer of 35 reais a share to acquire the stake in the Barueri, Brazil-based company it doesn’t already own, according to a regulatory filing today. The Sao Paulo-based lender said it won’t increase its bid if a second valuation of the company indicates a higher price than 35 reais.
Lazard, Redecard’s second-biggest investor with a 10 percent stake, requested a shareholder meeting to vote on whether a new appraisal is justified, the card processor said April 27. Rothschild & Sons Ltda. valued Redecard’s shares at 34.18 reais to 37.59 reais based on free-cash flow, the bank said April 5. Using a different method based on the value of Redecard’s competitor Cielo SA (CIEL3), Rothschild said the shares were worth 36.13 reais to 37.11 reais each.
Redecard’s board scheduled a shareholders’ meeting for May 18 to vote on Lazard’s proposal, Itau said today. The Brazilian bank is Redecard’s biggest shareholder with a 50 percent stake.
Redecard fell 0.8 percent to 32.10 reais in Sao Paulo today, while Cielo rose 2.7 percent to 57.20 reais. Brazil’s benchmark Bovespa index gained 0.2 percent.
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