Banks to propose Brazil's Caixa to delay unit IPO, source says

lunes 28 de septiembre de 2015 08:51 GYT

SAO PAULO, Sept 28 (Reuters) - The investment banks managing the initial public offering of Brazilian state-controlled Caixa Econômica Federal's insurance unit will recommend delaying the plan until April, as market conditions deteriorated markedly in recent days, a source directly involved with the deal said on Monday.

Representatives from Caixa Econômica and the Caixa Seguridade Participações SA unit, as well as the so-called underwriters are scheduled to meet in Brasilia at around 11 a.m. local time (1400 GMT) on Monday to discuss the deal, said the source, who requested anonymity since the plans remain private.

According to the source, in the case the National Treasury, which fully owns Caixa Econômica, seeks to proceed with the sale, the underwriters will propose launching the deal as soon as possible although under "great execution risks and the probability of a rather large discount." (Reporting by Guillermo Parra-Bernal)