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Report: Cetip, BM&FBOVESPA meet on merger terms

In the comingdays, Cetip SA is setto accept an overhauled unsolicited offer from BM&FBOVESPA SA, Reuters reported April 6, citing "asource with direct knowledge of the matter."

Cetip was reportedto have agreed on most of the terms in the new takeover offer from BM&FBOVESPA,after rejecting two proposals that valued the companyat 41 Brazilian reais and 39 reais per share in February and November 2015, respectively.

Reuters' sourcedid not divulge the agreed-to price for the latest merger proposal.

Max Bohm, ananalyst at Empiricus, said in November 2015 that BM&FBOVESPA would likely haveto raise its offer toaround 42 reais per share, bringing it closer to a typical merger premium rangeof 20% to 25%.

The possiblecombination of the two companies could create a company with an estimated marketcapitalization of around 40 billion reais, Reuters said.

As of April 5, US$1 was equivalent to 3.67 Brazilianreais.