Banco do Brasil, Bradesco in Citigroup venture talks-source

Banco Bradesco

09/01/2016 16:14

SAO PAULO, Jan 9 (Reuters) - Brazilian lenders Banco 
Bradesco  BBDC4.SA  and Banco do Brasil  BBAS3.SA  are in talks 
to buy Citigroup's  C.N  stake in a credit card processing joint 
venture with Elavon Inc, a source with knowledge of the 
negotiations said on Saturday. 
    The acquisition could be closed next month by Bradesco and 
Banco do Brasil's holding company Elo Participações, the source 
said, asking not to be named because the discussions are 
confidential. 
    Representatives for Bradesco, Banco do Brasil and Citigroup 
declined to comment on the talks, which were first reported in 
Saturday's edition of Estado de S.Paulo. The newspaper did not 
say how it got the information. 
    Reuters reported in November that Citigroup had put the 
stake up for sale after Brazil's central bank said the joint 
venture needed more cash and the U.S. bank declined to come up 
with any additional funds.  urn:newsml:reuters.com:*:nL1N13I0ZN 
    Citigroup owns 49.9 percent of the Elavon do Brasil venture, 
which had negative equity of 195 million reais ($49 million) as 
of June, according to Citigroup's Brazilian financial 
statements, meaning the bank could lose money if it tried to 
sell the stake. 
    Bradesco and Banco do Brasil are controlling shareholders of 
Cielo SA  CIEL3.SA , Brazil's No. 1 card payment processor. 
    ($1 = 4.02 Brazilian reais) 
 
 (Reporting by Aluisio Alves; Writing and additional reporting 
by Brad Haynes; Editing by Helen Popper) 
 ((brad.c.haynes@thomsonreuters.com; +55 11 5644 7725; Reuters 
Messaging: brad.c.haynes.thomsonreuters.com@reuters.net)) 
 
Keywords: CITIGROUP BRAZIL/M&A