* Cousins claim $2.6 bln takeover infringes rights-paper
* Brazil's No.2 brewer says acquisition is a done deal
* Schincariol says deal respected Brazil law, accords
SAO PAULO, Aug 4 A family feud could put at
risk the $2.6 billion takeover of Schincariol, Brazil's
second-largest brewer, by Japan's Kirin Holdings Co (2503.T),
according to a newspaper report on Thursday.
Valor Economico newspaper reported that minority
shareholders holding 49.55 percent of Schincariol had filed a
suit to block a deal between their cousins, owners of the
controlling stake, and Kirin, which is making its first foray
into the fast-growing South American economy. [ID:nL3E7J13TG]
Valor, citing a legal document, reported that the minority
shareholders, siblings from the Schincariol family, claimed the
sale violated their right of first refusal for the shares.
The family dispute traces back to how the burgeoning brewer
was divided up by the prior generation.
A spokesman for Schincariol told Reuters on Thursday the
deal with Kirin had been closed, respecting the rights of all
The feud highlights legal risks to foreign investors in
Brazilian companies making the transition from family
businesses to global brands as booming domestic demand in Latin
America's largest economy draws international attention.
Valor said the long-standing threat of legal action by the
minority shareholders had scared away other potential bidders
for Schincariol in recent years.
A highly competitive and shrinking home market has forced
Kirin and rival Asahi Group Holdings (2502.T) to look abroad
for growth, but a lack of targets in consolidating global beer
markets has made expansion tough for the Japanese brewers.
Critics say Kirin is overpaying for a problematic asset in
a highly competitive market. [ID:nN1E7710IJ]
(Reporting by Brad Haynes and Brian Winter; Editing by
Guillermo Parra-Bernal and Ted Kerr)