BM&FBovespa steps up Cetip deal pressure with shareholder letter
RIO DE JANEIRO Feb 29 (Reuters) - Brazil's BM&FBovespa SA stepped up its campaign to win over rival clearinghouse Cetip SA Mercados Organizados on Monday, saying a deal would improve services and create savings of tens of billions of reais.
If it goes ahead, a deal would make BM&FBovespa the dominant exchange in Brazil, controlling depositary and clearing activities for all types of financial assets, including benchmark indexes and proprietary market data.
In an open letter to shareholders, BM&FBovespa laid out 10 reasons for the deal. It first proposed a combination in November but was forced to sweeten its bid earlier this month to 41 reais per share, valuing clearinghouse and depositary company Cetip at about 10.86 billion reais ($2.7 billion).
"The integration of activities would significantly reinforce the business model of the combined company by increasing the distribution of revenue," the letter said.
($1 = 3.999 reais) (Reporting by Stephen Eisenhammer; Editing by Alexander Smith)
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