SAO PAULO Feb 10 Brazilian car rental company
Unidas SA plans to scrap an initial public offering slated to be
priced later on Friday, reflecting sluggish investor demand
after a rival listing earlier in the week, two people with
direct knowledge of the situation said.
According to the people, who are not allowed to speak
publicly on the process, shareholders Gávea Investimentos Ltda,
Vinci Partners and Kinea Investimentos Ltda shunned a suggestion
from the banks underwriting the IPO to cut the suggested price
tag earlier in the week.
That, coupled with competition from rival Movida
Participações SA's listing, has prompted the company to announce
the decision to suspend the process, they said.
Banks are working on ways to help the three shareholders
divest their combined stake of about 45 percent in Unidas, one
of the people said. Unidas did not have an immediate comment.
(Reporting by Guillermo Parra-Bernal; Editing by Bernadette