Brazil: Sadia and Perdigao may merge

Brazil's largest meat processor, Sadia, said it is considering a business tie-up with Perdigao, another major meat processor and exporter, reports Reuters.

Sadia said that it was analyzing with Perdigao "the viability and the convergence of interests in some type of association". No further details were given on the type of cooperation being considered and said no agreement had been reached.

In 2008, the company reported a third-quarter net loss of 777 mln real (US$342 mln) mainly from foreign exchange derivatives losses.

In 2006, Sadia tried to acquire control of Perdigao with a hostile takeover bid that was rejected by Perdigao shareholders.

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