Perdigao Plans Reorganization

Brazil’s Perdigao is planning more corporate restructuring, including a partial split-off of Perdigao Agroindustrial and the transfer to Perdigao of the unit. This consists of its investments in subsidiaries Perdigao Agroindustrial Mato Grosso, Batavia Industria de Alimentos and Maroca & Russo Industria e Comercio (Cotoches), as well as certain liabilities in the form of debt obligations, accounts payable and intercompany loans. Perdigao will incorporate the wholly owned subsidiaries and the restructuring will be submitted for approval of general shareholders. Goodwill to be registered as part of the acquisition of the incorporated companies, in the amount of BRL149m, based on forecasts of future years’ earnings and will be amortized in its entirety in fiscal year 2008. The food company also states that it got BRL284m from BNDES last week for a number of already completed capacity expansion investment projects.