RIO DE JANEIRO and SAO PAULO (Reuters) - The investment arm of Brazil’s development bank BNDES, BNDESPar[BNDESP.UL], will decide by the end of the next week whether to sell its 29 percent stake in pulpmaker Fibria SA FIBR3.SA and potentially to whom, three sources with knowledge of the matter said on Wednesday.
BNDES [BNDES.UL] senior executives discussed the matter on Monday without reaching a decision, the sources added, asking for anonymity because they were not authorized to discuss the matter publicly.
BNDESPar and Brazilian conglomerate Votorantim [VOTOR.UL], which holds 29.4 percent of Fibria, are controlling shareholders in the pulp and paper company.
BNDES senior management will discuss the issue again next week, according to the sources, considering proposals by Paper Excellence and Suzano.
Among the directors, there are differing opinions on which bidder should win. The sources said BNDES and Votorantim will consider future perspectives for the company, as well as the specific transaction terms offered by each bidder.
Although there has been speculation on BNDES and Votorantim SA requesting higher bids, two sources with knowledge of the matter said the Suzano and Paper Excellence proposals have not been rejected by controlling shareholders.
Reporting by Rodrigo Viga Gaier; Additional reporting by Tatiana Bautzer and Carolina Mandl; Editing by Cynthia Osterman