M&A

25 November, 2009

Brazil Caixa seals Panamericano stake deal-report

SAO PAULO, Nov 25 (Reuters) - Brazilian state-owned bank Caixa Economica Federal is in advanced talks to buy a minority stake in Banco Panamericano (BPNM4.SA), Brasil Economico newspaper reported on Wednesday, citing an unnamed source close to the deal.

The purchase is part of a plan by Caixa, the country's largest mortgage lender, to expand into car loans, the daily newspaper reported.

Caixa would structure the transaction similarly to state-controlled Banco do Brasil's (BBAS3.SA) acquisition of a 49.99 percent stake in privately-held Banco Votorantim in January, Brasil Economico added.

Panamericano and Caixa didn't return calls seeking comment on the report.

Panamericano, which focuses on paycheck-deductible consumer finance and automobile loans, was among several medium-sized Brazilian banks that suffered a liquidity crunch at the height of the global financial turmoil late in 2008, Brasil Economico said.

The bank had a mismatch between its funding, which generally has a term of about 12 months, and its liabilities, particularly for vehicle loans that last between 50 and 60 months, the daily added.

(Reporting by Elzio Barreto; Editing by Guillermo Parra-Bernal) ((elzio.barreto@thomsonreuters.com; +55 11 5644-7725; Reuters Messaging: elzio.barreto.reuters.com@reuters.net))

Source: http://www.reuters.com