Itau, Unibanco Unveil Merger Terms

Itau and Unibanco have released terms of their proposed merger, to be voted on at a shareholders meeting on November 28. At current values, the proposed share exchange ratio values Unibanco at BRL29bn. The deal boosts Itau Holding’s capital base by BRL12bn to BRL29bn, according to the company statement. Shareholders of Unibanco will receive one common share in Itau Holding for every 1.1797 Unibanco ordinary share and one Itau Holding share for every 3.4782 Unibanco preferred shares they hold. Rothschild provided Unibanco with a fairness opinion while Morgan Stanley gave the same for Itau.