June 22, 2017 / 11:09 AM / a year ago

Brazil's Fibria eyes bid for Eldorado Brasil -filing

BRASILIA, June 22 (Reuters) - Brazil’s Fibria SA, the world’s No. 1 eucalyptus pulpmaker, is considering a bid for rival Eldorado Brasil Celulose SA, it said in a securities filing late on Wednesday.

Fibria said it had not yet signed any purchase agreement as it keeps looking for opportunities to grow and preserve its market leadership.

J&F Investimentos SA, controlled by the billionaire Batista 7family, owns 81 percent of Eldorado. The company is among the flagship assets that J&F put up for sale after agreeing to pay a record-setting 10.3 billion real ($3.2 billion) fine for its role in corruption scandals that threaten to topple Brazil President Michel Temer.

The remaining 19 percent is owned by Brazilian pension funds Petros Fundação and Funcef Fundação dos Economiarios , and special purpose vehicle FIP Olímpia.

Other possible bidders for Eldorado include Arauco, a unit of Chile’s Empresas Copec SA, which announced interest in a securities filing on Friday. Brazilian rival Suzano Papel & Celulose SA is also considering a bid, a source told Reuters last week. (Reporting by Silvio Cascione; Editing by Lisa Von Ahn)

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