Brazil's Perdigao to boost capital for Sadia offer

SAO PAULO, May 29 (Reuters) - Brazilian food processor Perdigao (PRGA3.SA) said on Friday it will propose to shareholders that they approve plans to issue shares to pay for the acquisition of rival Sadia (SDIA4.SA).

The company's board will submit the proposal, which seeks to raise authorized capital to 500 million shares from the current 250 million shares, at a June 19 assembly, the company said in a regulatory filing.

This month, Perdigao agreed to buy Sadia in an all-stock transaction valued at 1.4 billion reais ($710 million). The combined companies will form the world's largest poultry exporter.

Perdigao shares fell for a second day on Friday, shedding 1.9 percent to 38.6 reais. The stock has advanced 30 percent this year.

($1=1.97 reais)

(Reporting by Guillermo Parra-Bernal; Editing by Richard Chang)