November 9, 2018 / 12:59 AM / a year ago

UPDATE 1-Brazilian caterer plans new bid for rival IMC -source

(Adds Reuters sourcing)

SAO PAULO, Nov 8 (Reuters) - Brazilian caterer Sapore SA is discussing financing for a new takeover bid for Brazilian restaurant operator International Meal Company Alimentacao SA , known as IMC, a source with knowledge of the matter said on Thursday.

Unlisted Sapore could raise up to 550 million reais ($146 million) to finance the bid for IMC, which owns fast-food brand Frango Assado and fast-casual restaurant chain Viena, the source added, asking for anonymity as the talks are private.

Sapore and IMC did not immediately comment.

A previous offer by Sapore was rejected by IMC’s board in September after disagreements in the auditing phase of the deal. At the time, Sapore proposed to buy 25 percent of IMC’s outstanding shares at 9.30 reais apiece.

The new offer would see Sapore buying up to 42 percent of IMC’s capital at a price of up to 8.50 reais per share, according to newspaper Valor Economico, who reported the talks earlier on Thursday. A second step would be a proposal to merge the two companies.

A second person with knowledge of the matter said the disagreements in the previous deal were over the amount of tax credits held by Sapore.

Sapore had been recently discussing a potential initial public offering with investment banks, the source added.

$1 = 3.7604 Brazilian reais Reporting by Tatiana Bautzer, Editing by Rosalba O'Brien

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