Dispute by Statius worry about new proposed purchase by Kroton

RIO DE JANEIRO/SAO PAULO (Reuters)-the battle for control of Estácio Participações gained momentum on Tuesday (21) with the failure of the efforts of the second largest company in Brazil''s private higher education to remain independent is not sufficient to avoid competing offerings.
Kroton Educacional improved by almost one third its bid for control of Statius to the plane released on June 2. The news agency Reuters anticipated Kroton''s intention to improve the proposal last week.
A source aware of the Kroton''s plans said the proposed change 1.25 share issued by Kroton for each role of Estácio has won support from about 40 percent of shareholders of Statius, and that is final.
The other interested is to be educational, who is willing to revise the terms of the offer of a merger involving cash and stock sent to the Board of Directors of Statius in June 5, said the Chief Executive of Be, Jânyo, this Tuesday. He gave no further details about what would be the new terms.
Kroton''s offensive and Be occur amid opposition from the second largest shareholder of Statius, Zaher''s family, about the sale of the company. Chaim Zaher was named interim Chief Executive of Statius last week to help protect the company from takeover deals, cut costs and expand.
Swollen structure
The fight by Statius, a company of about 588 1000 students and annual revenue of $ 4.3 billion, puts in scene which could become the fiercest battle for an unsolicited acquisition in Brazilian private educational sector, one of the fastest growing industries in the country.
Analysts said the Estácio swelled their cost structure compared to that of rivals, making it an alluring target: a buyer will have ample room to cut costs and strengthen business focus on geographic expansion and threads.
The Zaher want at least 1.5 Kroton action for each role of Estacio, told Reuters a source close to the family.
Kroton''s latest proposal is valid until June 30 and evaluates the Estacio in a quarter of its size despite having almost half the number of students, added this source close to Zaher.
Kroton and Statius refused to comment.
Support
The interest in Statius highlights the strength of private operators of higher education even when a recession of two years pressing the increase in delinquencies and the Government reduces the Fies (Student Financing Fund).
The slowdown in revenue growth led shares of Statius, a result of a series of acquisitions in recent years, a 21% drop in cumulative 2016 until June 1, a day before the announcement of the proposal of Kroton.
In comparison, strong results boosted shares of Kroton and Be to a high of 18% and 51%, respectively, over the same period.
Since the dispute by Statius began, the company''s shares jumped more than 40%.
Stockholders divided
Zaher family, which owns 13% of Statius, is taking a tough position in negotiating with Kroton, seen by them as a predator.
The Chief Executive of Be told Reuters by phone that "we are prepared to take a proposal to generate value for both shareholders, the two companies", if the shareholders of Statius to meet with the company to discuss again the terms of the proposal.
The vote of the Zaher, however, may not be enough to block the proposal of Kroton, said analysts and investors.
The first source, who spoke on condition of anonymity, said that shareholders with positions in the two companies and exclusively in Statius promised improved proposal Kroton, without specifying names.
Among the main shareholders are the Oppenheimer Funds, which owns 18% and 5% of the Estacio Kroton.
Competitive barriers
The possible Union of Kroton and Statius must face obstacles in the Cade (Administrative Council of economic defense) and in other spheres.
Last week, the OAB-RJ (order of lawyers of Brazil in Rio de Janeiro) presented the complaint in the Cade against the interest of Kroton in acquiring the Estácio, saying it would create a highly competitive power market.
A combination Kroton-Estacio would result in a company almost four times greater in number of students than to be educational.