BdB Bags State-Controlled Bank

Banco do Brasil has agreed to acquire Banco do Estado do Piaui, the state bank of Piaui, for BRL81.7m. BB plans to issue 2.93m shares to finance the acquisition, exchanging 1 unit for 4.60 BEP shares, and has called a shareholder meeting for November 28 to seek approval. BEP has BRL330m in assets. Amid a surprising wave of Brazilian bank consolidation in recent weeks, Banco do Brazil is heard negotiating for Sao Paulo state-owned bank Nossa Caixa and a minority stake of up to 49% in Banco Votorantim. BB could be preparing to offer as much as BRL7bn for each, according to industry officials and local press reports.