Brazil's BM&FBovespa arranging loan financing for Cetip deal
SAO PAULO, April 11 (Reuters) - BM&FBovespa SA is currently arranging loan financing for the acquisition of rival Cetip SA Mercados Organizados, a deal that could cost Brazil's largest financial exchange up to 12.9 billion reais ($3.6 billion), mostly in cash.
BM&FBovespa Chief Executive Officer Edemir Pinto said on Monday the deal will create "billions of reais" in cost savings in back office and support areas. Pinto declined to elaborate on loan financing, noting that BM&FBovespa could pay around 75 percent of the value of the deal in cash.
The boards of both companies will meet on May 17 to approve the transaction, Pinto added. Reuters reported on Wednesday a deal after BM&FBovespa improved the terms of two prior bids. ($1 = 3.5831 Brazilian reais) (Reporting by Aluísio Alves and Guillermo Parra-Bernal; Additional reporting by Priscila Jordão in São Paulo; Editing by Jeffrey Benkoe)
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