SAO PAULO, April 5 (Reuters) - Qatar’s sovereign wealth fund is facing strong pushback from investors to price an offering of 80 million units of Banco Santander Brasil SA at around 25 reais ($8.08) each, well below the price tag initially suggested, two people familiar with the transaction said on Wednesday.
According to the people, who requested anonymity because the transaction is in the works, at a price of 25 reais per unit, bids would come in line with the amount of stock being offered in Brazil. Banks underwriting the transaction had initially asked investors to place bids for the units - a blend of Santander Brasil’s common and preferred shares - at 27 reais, the people said.
Santander Brasil, as well as underwriters Bank of America Merrill Lynch and Credit Suisse Group AG, did not have an immediate comment. Efforts to contact the sovereign wealth fund known as QIA were unsuccessful.
$1 = 3.0937 reais Reporting by Paula Arend Laier and Guillermo Parra-Bernal; Additional reporting by Ana Mano in São Paulo; Editing by Richard Chang