Monday, 2 February 2009

Sadia is Preparing to Sell Non-Core Assets, Raise Cash. Will The Company Fend Off a Possible Takeover?


Uhhmm, probably not, to be frank.

Marcelo Audi, a Banco Santander analyst, wrote a research note in which he quotes Wilson Teixeira, the company's investor relations director, as saying that the food processor is considering financing offers from several lenders; Sadia is also studying how possible is getting rid of non-core assets to raise cash. Such assets include its brokerage-proprietary bank. Teixeira spoke during a conference call with analysts last week.

The Santander analyst sees possible that the company raises 1 billion reais in cash from all these actions. Would that save the company from becoming a takeover target? Only time will tell us.

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