Sadia SA, a leading Brazilian producer of chilled and frozen meats, has withdrawn its hostile bid for rival meatpacker Perdigao SA after shareholders rejected its offer.

Sadia had hoped to acquire between 50% and 100% of shares in a deal that could have been worth as much as BRL3.9bn (US$1.77bn).

Sadia initially offered BRL27.88 per share last Monday (17 July) and upped its market offer to BRL29 on Friday.

However, pension funds and investors holding 55% of Perdigao’s outstanding shares rejected the second offer, causing Sadia to withdraw its bid.