Banco Cruzeiro do Sul SA soared the most in two months amid speculation Brazil’s deposit insurance fund is receiving bids to buy the bank and save it from liquidation.
Shares climbed 21 percent to 1.93 reais at the close of trading in Sao Paulo, paring this year’s slump to 86 percent. The deposit insurance fund, which has managed Cruzeiro since policy makers ordered its intervention in June, received bids from lenders Banco Bradesco SA and Grupo BTG Pactual, Agencia Estado reported after the close of trading yesterday, citing unidentified people.
“It looks like there are two banks interested in taking over Cruzeiro,” Luiz Campos, an emerging-market portfolio manager at Dinosaur Securities LLC, said in a telephone interview from Sao Paulo. “There’s a rumor that Bradesco and BTG are bidding, but there’s no official confirmation.”
Bradesco, BTG Pactual and Cruzeiro do Sul didn’t immediately comment on Agencia Estado’s report when contacted by Bloomberg News today.
The deposit insurance fund is facing a deadline tomorrow to find a buyer or liquidate the bank. The fund is also seeking to buy back two of Cruzeiro’s six outstanding dollar bonds at losses ranging from 39 percent to 74 percent. It said on Aug. 29 that more than 75 percent of investors had accepted the offer.
“It’s hard to say if the deal will go through,” Paulo Hegg, an analyst at Sao Paulo-based multi-family office Blue Star Private, said in a phone interview. “The names being speculated are BTG and Bradesco, but nothing official. It’s in no one’s interest that the bank is liquidated.”