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January 17, 2008 |
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UNIAO DE BANCOS: Selling Redecard Stake with Citigroup, Itau Uniao de Bancos Brasileiros plans to take part in a 15% joint stake sale in Brazilian credit card company Redecard SA. According to published reports, Citigroup, Banco Itau Holding Financeira SA, and Uniao de Bancos have disclosed the plan in regulatory filings. Bloomberg News says Citigroup holds a 24% stake in Redecard, whose total market value is US$10.4 billion (BRL18.2 billion). Itau and Unibanco each hold 23.2% in the credit card company, Reuters adds. According to Reuters, Citigroup plans to sell 41.13 million shares from its 161.2 million holdings in a bid to raise capital to offset losses in the United States. The two Brazilian banks did not disclose in their filings how much shares are they letting go. Itau BBA, the investment banking unit of Banco Itau, leads the credit card company's share offering, Reuters states. The series of offerings is expected to bring in about US$1.7 billion, Bloomberg says, citing a Valor Economico report. Once the offering is completed, MarketWatch says about 40% of Redecard's shares would be trading on the market, up from the 25.6% shares floating right now. About Citigroup New York-based Citigroup Inc. is a financial services holding company whose businesses provide a range of financial services to consumer and corporate customers. Its segments include Global Consumer Group, Corporate and Investment Banking, Global Wealth Management and Alternative Investments. About Banco Itau Banco Itau Holding Financeira SA -- http://www.itau.com.br/ -- is a private bank in Brazil. The company has four principal operations: banking -- including retail banking through its wholly owned subsidiary, Banco Itau SA(Itau), corporate banking through its wholly owned subsidiary, Banco Itau BBA SA (Itau BBA) and consumer credit to non-account hold customers through Itaucred -- credit cards, asset management and insurance, private retirement plans and capitalization plans, a type of savings plan. Itau Holding provides a variety of credit and non-credit products and services directed towards individuals, small and middle market companies and large corporations. About Unibanco Headquartered in Sao Paulo, Brazil, Uniao de Bancos Brasileiros SA -- http://www.unibanco.com/ -- is a full-service financial institution providing a range of financial products and services to a diversified individual and corporate customer base throughout Brazil. The company's businesses comprise segments: Retail, Wholesale, Insurance and Pension Plans and Wealth Management. Uniao de Bancos and its associated companies FinInvest, LuizaCred, PontoCred and Tecban (Banco 24 Horas) offer a network composed of 17,000 points of service. It also counts on 7,580 automated teller machines and all 30 Hours' products and services, including the telephone service and the Internet banking. The company's international network consists of branches in Nassau and the Cayman Islands; representatives offices in New York; banking subsidiaries in Luxembourg, the Cayman Islands and Paraguay; and a brokerage firm in New York -- Unibanco Securities Inc. * * * As reported in the Troubled Company Reporter Latin America on Feb. 12, 2007, Fitch changed the outlook of these ratings of Unibanco-Uniao de Bancos Brasileiros SA: -- Foreign currency IDR at 'BB+'; Outlook to Positive from Stable; -- Local currency IDR at 'BB+'; Outlook to Positive from Stable; and -- National Long-term rating at 'AA(bra)'; Outlook to Positive from Stable Fitch Ratings revised the Outlook on the foreign and local currency Issuer Default ratings and National ratings of a select group of Brazilian banks, insurance and leasing companies to Positive from Stable. This rating action follows the revision of Brazil's foreign and local currency IDR Outlooks. All the ratings on these banks, insurers and leasing companies are affirmed. |
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