Voto Still Wants Aracruz

Votorantim Group’s paper and pulp unit VCP is still interested in acquiring a 28% stake in Aracruz from shareholder group Arapar. Voto’s IR executives say the talks for the acquisition are still ongoing, despite recent reports the deal had fallen apart. Arapar, which is controlled by the Lorentzen Group, had agreed to sell the stake to VCP, giving it control of the company, for $1.7bn earlier this year, but the deal failed when Aracruz’s stock plummeted as the company posted derivatives-related losses and was subsequently downgraded. The transaction is presumably being hammered own at lower valuations. Credit Suisse is advising Lorentzen and JPMorgan is advising VCP. JPMorgan also agreed to extend a $1.8bn bridge loan to VCP prior to the deal collapsing. The financing has been suspended since then.