Brazilian meat giant JBS has denied that it is considering making its Pligrim’s Pride unit the parent of its US operations to limit the influence of Brazil’s BNDES state development bank.
Yesterday (28 July), Bloomberg claimed JBS was considering the move to stop Brazil from taking greater control of the US business after BNDES bought US$2bn of convertible bonds.
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The bonds are convertible into JBS stock if the company fails to hold an IPO of its JBS USA Holdings unit by 2011. JBS said in May that it would not seek to float JBS USA this year.
The report said BNDES could more than double its stake in JBS USA under the offer terms to 34%, from 17%.
JBS, however, said the Bloomberg report was “completely unfounded”.
The Brazilian group announced plans last September to buy a majority stake in the then bankrupt Pilgrim’s Pride. The move was cleared by the US government the following month.
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