Second Evaluation Means Redecard Offer Fair: Itau

Itau’s BRL11.8bn ($5.75bn) offer for the remainder of Redecard is in line with an appraisal requested by a minority investor, the bank says. Credit Suisse puts the credit card payment-processor’s value at BRL34.66-BRL38.12, meaning Itau’s BRL35.00 offer is justified by the latest evaluation, ordered by minority holder Lazard Asset Management, after it called a previous evaluation too low. In April Rothschild found the value to be BRL34.18-BRL37.59. Itau, which owns 50% of Redecard, has said it does not plan to increase the price if its offer – launched in February – is rejected. The bank aims to delist Redecard, which held an IPO in 2007. Redecard shares closed Monday at BRL33.35.