Arcos Holders Plan Selldown

Restaurant operator Arcos Dorados is planning a follow-on offer of secondary shares owned by private equity funds. Funds linked to DLJ, Capital International and Gavea, which bought McDonald’s LatAm operations along with controller Woods Staton in 2007, are looking to sell shares. Exact timing and amount are still to be determined. Bankers say that some of the region’s stronger more well-known companies could soon file follow-ons so that they are ready to take advantage of any window that opens up before the end of the year. This comes as shares of Arcos Dorados jumped about 3.48% on the New York Stock Exchange Monday to hit $24.67 as stock markets surged on hopes for a resolution to the European debt crisis. Bank of America, Credit Suisse, Merrill Lynch, Citi, Itau, JPMorgan and Morgan Stanley are managing the sale. The LatAm McDonald’s franchisee raised $1.25bn in its IPO in April, through the same group of leads. This was the only deal in the region this year to price above its target range. At present Gavea holds9.3%, DLJ 2.9% and Capital International 7%.