BM&FBOVESPASA said April 7 that it sold its entire 4% stake in , representing 13.6 millionshares of class A common stock, in order to raise funds for its proposed mergerwith Cetip SA.
The Brazilian stock exchange operator did not disclose the termsof the sale or the identity of the buyer, but the Financial Times reported that based on CME's closing price, the dealfetched approximately $1.3 billion for BM&FBOVESPA.
BM&FBOVESPA did note, however, that based on preliminaryestimates, the sale generated an accounting loss of 470 million Brazilian reais,which will impact the company's second-quarter earnings.
Reuters reported April 6, citing a source, that Cetip has acceptedthe terms of an overhauled merger bid from BM&FBOVESPA after two prior proposals. An official announcement is still pending.
Meanwhile, BM&FBOVESPA CEO Edemir Pinto resigned from CME'sboard, effective April 6, the U.S.-based company said in a regulatory filing. Inits statement, BM&FBOVESPA noted that CME does not currently plan to reduceits 4% stake in the Brazilian firm, and that the two entities will continue to worktogether given the success of their decadeslong partnership.
As of April 7, US$1 wasequivalent to 3.70 Brazilian reais.