Category: M&A

Brazilian holding company Itaúsa, which owns Bank Itaú, is to buy the international private banking business of ABN AMRO in Miami and Uruguay for $150m. The acquisition gives Itaú assets under management of around $3.3bn, taking its total up to $23bn. Itaú began expanding its private banking business outside Brazil in 1995. Last year, the São Paulo-based bank bought the BankBoston operations in Chile and Argentina from Bank of America for around $630m.

Brazilian telecom company Telemar is heard to be close to making a decision on a $2bn plus loan financing to pay for its leveraged acquisition of Telenorte, a competitor. The loan will be taken out at the holding company level, according to bankers away from the process. Telemar is heard to have mandated ABN AMRO for a $300m portion to be taken out at the operational company level.

Mexican broadcaster Televisa says it is evaluating an acquisition of local satellite operator Satélites Mexicanos (Satmex). The company successfully restructured last year to position itself as a target in the consolidating satellite communications sector. It appointed Morgan Stanley to advise on the sale to a strategic buyer. The restructuring, which has been praised for its fair treatment of foreign creditors, left 78% of the company’s equity in the hands of the debt holders. The remaining 22% is held by the Mexican government (20%) and jointly by local telco Principa and US operator Loral (2%).

Brazilian low-cost airline Gol is to increase its share capital by $255 million (518 million reais) to pay for its acquisition of rival domestic carrier Varig. The company will issue of 8.519 million preferred shares at a price of 60.81 reais per share. Last month Gol announced it had agreed to buy the rescued airline in a deal worth $320 million. It said then it would finance the acquisition through cash and shares and would take on Varig’s debentures.

A $1.5 billion acquisition loan for Tenaris to acquire US tube maker Hydril is set to be flexed down thanks to strong investor interest. According to the deal terms, if oversubscribed by 25%-50%, pricing falls 2.5 basis points, for 50%-75% oversubscription, it drops 5 basis points, and 75%-100% excess demand results in a 7.5 basis point reduction, according to a banker not on the deal. A doubling of the book or more will result in a 10 basis points drop. Demand is heard already exceeding the first bracket. The deal has three tranches: a $1 billion 2-year at 40 basis points over Libor for Tenaris, a $200 million 5-year at 50 basis points over Libor; and a $300 million Hydril loan, also at 50 basis points. Citi is the lead arranger.

The proposed acquisition of an indirect capital stake in 12% of Telecom Italia by US telco AT&T and Mexican operators Telmex and América Móvil could cost the companies around $3.5 billion and $1.8 billion each, respectively, according to Moody’s Investors Service commenting on the announced stock purchase. On April 1, the companies revealed they had entered into exclusive negotiations with Italian firm Pirelli to acquire two-thirds of the share capital of Italian company Olimpia, which owns 18% of the ordinary shares of Telecom Italia.

Colombia’s largest financial institution, Bancolombia, has secured loans totaling $590 million as part of the financing for its acquisition of El Salvador’s Banagrícola. The loans, from foreign banks, will be used for the purchase of foreign currency loans of Bancolombia (Panamá), said the bank in a press release. Bancolombia bought Banagrícola last December for around $900 million. Earlier, the bank issued a statement saying that it had obtained all the necessary authorizations for the acquisition. The public tender offers are expected to be initiated in Panama and El Salvador in the next few days.