UPDATE 1-BM&FBovespa raises $1.25 bln from CME stake sale to buy rival

jueves 7 de abril de 2016 18:08 GYT

(Recasts to add details of deal, estimate)

By Guillermo Parra-Bernal

SAO PAULO, April 7 (Reuters) - BM&FBovespa SA, Latin America's largest financial exchange operator, on Thursday sold its 4 percent stake in larger peer CME Group Inc in a move aimed at raising funds to buy a Brazilian rival.

In a securities filing, São Paulo-based BM&FBovespa said the decision to sell the 13.6 million Class A common shares it owned in CME implies the end of a cross-holding agreement with CME that lasted almost a decade. Terms of the transaction or the identity of the buyer were not disclosed.

Based on CME's closing price of $92.22 on Thursday, BM&FBovespa fetched at least $1.254 billion from the deal. Reuters reported on Wednesday, citing a source, that Cetip SA Mercados Organizados had agreed on terms of a revamped, unsolicited offer by BM&FBovespa.

The boards of both BM&FBovespa and Cetip, which is also based in São Paulo, may announce the transaction "within 48 hours," the source added. The companies declined to comment.

A Cetip takeover will make BM&FBovespa the dominant exchange in Brazil, controlling depositary and clearing activities for all types of financial assets and sourcing investors with proprietary market data. Cetip is Latin America's largest depositary of financial securities with a vast over-the-counter, fixed-income derivatives operation.

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