BRASILIA, June 21 (Reuters) - Brazilian food processor BRF SA is negotiating a block sale of some of its shares in smaller beef company Minerva SA, newspaper Valor Econômico said on Thursday.
According to the latest figures provided in Minerva’s website, BRF owns an 11.62 percent stake in Minerva, Brazil’s fourth-largest listed meat company by sales. A sale would cut its ownership to around 7 percent, Valor said, citing three people with knowledge of thee matter.
BRF began to sell shares in the market in the first week of June, contributing to a 6.6 percent decline in the price of Minerva shares this month, according to the news article.
BRF has engaged in talks with the investment banking units of Banco BTG Pactual SA and Morgan Stanley to coordinate the transaction but has yet to issue any mandate, the newspaper added.
Representatives of BRF, BTG Pactual and Morgan Stanley did not immediately respond to requests for comment.
Earlier this month, Minerva denied media reports that it had contacted investors about funding a merger with BRF. (Reporting by Bruno Federowski; Editing by Steve Orlofsky)