J&F ends talks to sell the Sneakers by disagreement on price, says source

SÃO PAULO-J&F Investments ended the talks for the sale of majority interest in your Sneakers to the group formed by Cambuhy investments and Itaúsa Investimentos on account of differences in relation to the price, said a person with direct knowledge of the matter on Sunday. According to the source, the J&F didn''t give in to the pressure of Cambuhy investments and Itaúsa for reduced the asking price for your slice 86% controller in Sneakers at the end of the exclusivity period of the negotiations, on Sunday. The source refused to report the size of the difference in price. Earlier on Sunday, Reuters reported that Cambuhy and Itasa had offered between 3.3 billion and 3.5 billion reais by Alpargatas. [nL1N1K0075] Cambuhy, itasa and Bradesco had no comment. The J&F had no immediate comment on the matter. The J&F, the holding company that controls the family fortune, need to raise capital to pay a record fine of 10.3 billion dollars provided for in the agreement of leniency and refinance loans to win. In may, the brothers Joesley and Wesley Batista signed agreement for leniency after admitting paying kickbacks to about 1,900 politicians. [nL1N1IX1FG] The Baptist will resume selling the Sneakers through competitive process "as soon as possible," said the source, who requested anonymity because of the sensitivity of the subject. The J&F hired the Bradesco BBI as a consultant in the operation. The common shares of Alpargatas shot 35% in the last three months amid speculation that the Baptist to put on sale. The papers accumulate 63% recovery this year. According to the source, the J&F seeking a higher price for your slice in SP Alpargatas, which administers a wide variety of brands, including the Osklen. Created in 1962 during the Bossa Nova movement, Hawaiian slippers are used worldwide by celebrities. Itaúsa manages the fortune of families and Setubal, which controls Villela Itaú Unibanco, the largest private bank of Latin America in terms of assets. The Cambuhy, for your time, is the investment vehicle of the billionaire family Moreira Salles, who is also a shareholder of Itaú. Both Cambuhy as Itasa reported regulators on June 26 that, if the proposal was successful, would also participate in Sneakers. Reuters reported the preliminary offer made by the Group on 16 June. [nE6N1HD02P] PACE of NEGOTIATIONS the talks between J&F and the group formed by Cambuhy and Itaúsa have gained pace in the past few days, while the Baptist pressed lenders to renegotiate more than 30 billion reais of debt of the holding and of the JBS, the world''s largest meat producer. The Baptist family planned to use the funds from the sale of Sneakers to pay a loan of 2.7 billion reais from the Caixa Econômica Federal, as reported by Reuters on Sunday. The loan is under investigation by the Tribunal de Contas da União (TCU) for possible irregularities. The Baptist purchased in December 2015 the Sneakers of the conglomerate Camargo Correa [PMORRC. UL], who also was involved in the corruption scandal of the car wash. The slices of J&F controllers on manufacturer of dairy products and pulp producer Eldorado in Brazil were also put up for sale and the process is advancing, according to Reuters in recent weeks. The sale of shares in Alpargatas, in Force and in Eldorado can yield 10 billion reais to J&F and reduce the indebtedness of the holding in more than 10 billion reais, told Reuters on Sunday the person familiar with the strategy of the Baptist family.