* CAOA offers 35 cents on the dollar plus interest for bonds
* Banco BVA was seized by central bank after breaching rules
By Guillermo Parra-Bernal
SAO PAULO, March 21 Brazilian entrepreneur
Carlos Alberto Oliveira Andrade is offering to purchase Banco
BVA SA's 2014 bonds from investors at a 65 percent discount as
part of plans to take over the bankrupt Brazilian small-sized
lender, two sources with knowledge of the situation said on
Oliveira Andrade, who through his car dealership and
financing group CAOA is extending the tender for the bonds,
formalized a proposal to buy Banco BVA last week. Banco BVA was
seized by the central bank last October, citing deteriorating
financing conditions and a breach of regulations.
CAOA is offering to pay bondholders of the notes
35 cents on the dollar plus accrued interest in
cash, the sources said. The tender, which is being managed by
Deutsche Bank AG and Brasil Plural Banco Multiplo SA,
hinges on a successful acquisition of Banco BVA, the sources
The tender expires on March 27.
In the takeover proposal made to regulators and Banco BVA's
creditors last week, Oliveira Andrade wants to convert all debts
into shares of BVA. Currently there are $45 million outstanding
of the 2014 securities.
CAOA's press office did not immediately respond to written
requests seeking comment on the plan. Calls to a spokesman for
CAOA in São Paulo were not immediately answered.