SAO PAULO Aug 21 State-run Banco do Brasil SA
said on Wednesday it had postponed a plan to increase
its stake in troubled lender Banco Votorantim SA for an
Votorantim specializes in auto and corporate loans. Lending
in those two segments went through a serious downturn last year
as some borrowers increasingly fell behind on payments as a
result of an economic slowdown.
In a securities filing, Banco do Brasil said the delay was
mutually agreed with Banco Votorantim's main shareholder,
Votorantim Financas SA, but that both parties remain focused on
"capturing synergies" between the two institutions.
Banco do Brasil currently holds a 49.9 percent stake in
Votorantim and, according to a previous securities filing, any
transaction between the parties would only involve the purchase
of preferred shares of Banco Votorantim.
Banco do Brasil could use Votorantim's units, including a
fully-fledged trading desk and treasury unit as well as an
investment banking arm, to grow in areas where its presence is
still developing, such as financial and capital markets
advisory, brokerage and other financial services.