REFILE-UPDATE 3-Bradesco to pay $5.2 billion for HSBC Brazil unit, biggest-ever buy
(Corrects second paragraph to say "Europe's largest bank" instead of "Europe's largest banks")
* HSBC sells Brazil unit at higher-than-expected price
* Deal helps Bradesco boost presence in high-end segment
* Bradesco preferred shares fall 4 percent
* HSBC struggled with competition, high costs in Brazil
By Guillermo Parra-Bernal and Aluísio Alves
SAO PAULO, Aug 3 (Reuters) - Banco Bradesco SA agreed to buy HSBC Holdings Plc's Brazilian unit for 17.6 billion reais ($5.2 billion), narrowing the gap with larger rivals while boosting its base of affluent customers in Latin America's largest economy.
The deal between Bradesco and Europe's largest bank includes the latter's Brazilian retail banking and insurance units. The agreement, which still requires regulatory approval and was sealed on July 31, could close by June.
The purchase price, which could change to reflect the net asset value of both businesses, is equivalent to 1.8 times book value, way above what analysts expected and above Bradesco's own valuation. Reuters reported on July 20 that Bradesco had entered exclusive talks with HSBC after offering to pay about 12 billion reais, or 1.2 times book value. Continuación...