Brazil's Casa de Pedra IPO seen raising $2 bln-IFR

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SAO PAULO, Sept 17 | Thu Sep 17, 2009 12:46pm EDT

SAO PAULO, Sept 17 (Reuters) - Casa de Pedra, an iron-ore mine controlled by Brazilian steelmaker CSN (CSNA3.SA)(SID.N), is expected to raise $2 billion in an initial public offering valuing the mine at $7 billion, International Financing Review said on Thursday, citing bankers with knowledge of the plan.

The IPO plan has been in the cards for a while, according to industry analysts and bankers.

The view among bankers is that Sao Paulo-based CSN, one of Brazil's largest steelmakers, will bring its unit to market sooner rather than later, the publication said.

CSN bonds may benefit from the plan, one senior banker told IFR, because the proceeds could be used to pay off all of the company's debts at once should it choose to do so.

A spokeswoman for CSN in Sao Paulo said the company does not comment on market speculation. (Reporting by Guillermo Parra-Bernal and Alberto Alerigi Jr; editing by John Wallace)

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