Bidders Circle Ethanol Giant

Bids to acquire part or all of SantelisaVale, the Brazilian ethanol giant, are due March 16. Several prominent players are looking at making an offer, says a person at the debt laden private company, who asks not to be identified. Among those eyeing an offer are ETH, the ethanol startup company owned by Odebrecht; competing sugar and ethanol company Sao Martinho; agribusiness companies Bunge and Louis Dreyfus; and BTG, the recently formed asset manager and trading boutique co-founded by Andre Esteves. Also heard in the running are GP Investments, Archer Daniels Midland, Cargill and Cosan, according to local press. Itau and Bradesco are advising Santelisa and running the auction. The latter is among the company’s biggest lenders. In 2007 it provided controlling shareholders with a BRL1.5bn credit line to help them shore up ownership of the asset in the face of a takeover bid from Cosan. Santelisa was on track for an IPO in H2 2008 via Bradesco, but was forced to pull out when markets tanked. Goldman Sachs purchased a BRL400m 19% stake in Santelisa in July 2007, though it is not clear if the bank remains an investor.