January 10, 2014 / 1:45 PM / 4 years ago

Brazilian govt seeks Cosan takeover of railroad operator -report

RIO DE JANEIRO, Jan 10 (Reuters) - Brazil’s federal government is working behind the scenes to encourage a takeover of América Latina Logística SA, the country’s largest railroad operator, by a company that would invest in the nation’s dilapidated rail network, daily o Estado de S.Paulo reported on Friday.

Brazil’s national development bank BNDES will meet on Friday with directors of Cosan SA Indústria e Comércio to gauge its desire to resume talks to buy a controlling stake in the railroad, known as ALL, Estado reported, citing unnamed sources.

A spokesman for BNDES declined to comment on the report. A spokeswoman for Cosan also declined to comment. A spokeswoman for ALL said the company would not comment beyond its statement on Thursday.

In a securities filing on Thursday, ALL said it was considering “alternative solutions” to a long-running dispute with Rumo Logística, a logistics company already controlled by Cosan.

In addition to providing further financing for ALL, a deal between the two companies would settle the commercial dispute with Rumo Logística over the transportation of sugar. ALL and Cosan have had inconclusive talks about a tie-up in the past.

Newspaper Valor Economico reported on Thursday that they could resume talks. The report sent ALL’s stock soaring nearly 9 percent that day. The firm’s shares gained another 4.5 percent on Friday.

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below