Redecard SA shareholders voted to get a second appraisal of Itau Unibanco Holding SA’s 11.8 billion-real ($5.8 billion) bid for the company, handing a victory to Lazard Asset Management LLC in its battle to force a higher price, according to a regulatory filing today.
Minority investors in Barueri-based Redecard, Brazil’s second-largest card-payment processor, supported in a 57 percent vote Lazard’s proposal to hire Credit Suisse Group AG to evaluate the offering, according to a regulatory filing today. Lazard argued that NM Rothschild & Sons Ltda., the first investment bank to judge the offer, undervalued it.
Credit Suisse will receive 500,000 reais for the appraisal, which needs to be ready in 30 days, according to the statement.
Itau, Latin America’s biggest bank by market value, offered 35 reais a share on Feb. 7 to get full control of Redecard and delist it from the Sao Paulo exchange less than five years after it went public. Itau is Redecard’s largest investor with a 50 percent stake, while Lazard’s 10 percent share makes it second-biggest.
Itau has said it won’t raise its bid even with a higher appraisal by Credit Suisse, and may give up its buyout plan entirely, according to an April 30 filing.
Rothschild valued the stock at 34.18 reais to 37.59 reais based in a free-cash-flow calculation, according to an April 5 regulatory filing by Redecard. It said shares are worth 36.13 reais to 37.11 reais using a methodology based on the share price of Cielo SA, Redecard’s larger competitor.
Redecard fell 6.4 percent to 30.05 reais in Sao Paulo today, lower than Itau’s bid and also below the stock’s high of 36.40 reais on Feb. 8. The company has gained 3 percent this year, compared to a 37 percent advance for Cielo.