CORRECTED-Elavon Brazil sale to include U.S. Bancorp controlling stake -sources
(Corrects name of Brazil unit of Elavon throughout to Elavon do Brasil, not Elavon no Brasil.)
By Cesar Bianconi and Aluísio Alves
SAO PAULO Feb 10 (Reuters) - U.S. Bancorp will likely join partner Citigroup Inc and sell its stake in Elavon do Brasil, a Brazilian credit card processing joint venture that Citigroup has been trying to exit since late last year, two sources involved in sale talks told Reuters.
Elo Participacoes SA, a holding company controlled by Banco Bradesco SA and Banco do Brasil, has been in negotiations to buy Citigroup's 49 percent stake in Elavon do Brasil. With the 51 percent stake of U.S. Bancorp now on the table too, Elo is in talks to buy the whole company, the first source said.
The sources spoke to Reuters on Friday and Monday.
During talks, Bradesco refused to accept demands that Brazilian credit card transactions continue to be carried out on Elavon data systems in the United States, a condition that would saddle Elavon's Brazilian unit with fees in dollars, the second source said.
Neither of the sources would give a value for a possible Elavon do Brasil purchase. They requested anonymity because the talks between Elavon do Brasil and Elo are private.
A deal, though, could be slowed or complicated by Brazil's antitrust regulator, Cade, the two sources said.
Cade declined to comment on a deal until a formal request for approval is made. It is common, though, for companies negotiating mergers or acquisitions to consult the agency before making a formal request for approval of a transaction. Continuación...