April 30 (Bloomberg) -- Itau Unibanco Holding SA, Latin America’s biggest lender by market value, said it may give up its plan to buy out Redecard SA’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, 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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