M&A

26 November, 2009

UPDATE 1-Brazil's Panamericano bank says in talks with Caixa

* Panamericano main holder in talks to sell stake

* Talks with Caixa ongoing, price for stake not finalized

* Panamericano shares drop sharply after recent rally

SAO PAULO, Nov 26 (Reuters) - Brazilian bank Banco Panamericano, controlled by media tycoon Silvio Santos, said on Thursday its main shareholder was in talks to sell a minority stake to state-owned bank Caixa Economica Federal.

Panamericano said Caixa is in talks to buy 49 percent of voting shares (BPNM3.SA) and 20 percent of preferred shares (BPNM4.SA). Caixa confirmed the talks, but said it would only issue a statement after negotiations have been finalized.

"For now, there is no signed accord between the parties, given that the terms of the deal, particularly the price, haven't been defined," Panamericano said in a securities filing.

Santos controls 99.8 percent of the voting stock and 36.2 percent of preferred shares of Panamericano, through three holding companies.

Panamericano's preferred shares fell for the first time in five sessions, plunging 4.8 percent to 8.85 reais in early afternoon trading, compared with a 1.3 percent decline in the benchmark Bovespa index .BVSP.

The stock had surged nearly 17 percent over a four-day period on speculation about a possible deal with Caixa.

Panamericano, which focuses on paycheck-deductible consumer finance and automobile loans, posted a consolidated profit of 45.9 million reais in the third-quarter, 19.2 percent more than a year earlier. (Reporting by Elzio Barreto, editing by Maureen Bavdek) ((elzio.barreto@thomsonreuters.com; +55 11 5644-7725; Reuters Messaging: elzio.barreto.reuters.com@reuters.net))

Source: http://www.reuters.com