BEA Set for Jan.18 Privatization

Brazil's first and second largest private banks, Bradesco and Itau, will vie for Amazonas state-owned bank BEA on January 18 for a minimum bidding price of US$76.9mn (195mn reais), local newspaper O Globo reported. According to privatization rules, BEA employees will be eligible to purchase up to 10% of the bank's shares at a 50% discount. Brazil's Central Bank is on track to privatize by April of next year six former state banks that are in federal hands. The first auction will be that of Goias state bank BEG on December 4, followed by banks in Amazonas, Ceara, Maranhao, Piaui and Santa Catarina states. BEG's pre-qualifiers are Dutch bank ABN Amro, which picked up Paraiba state bank Paraiban on November 8 for 76.5mn reais, and local banks Bradesco, Itau and Unibanco (NYSE: UBB). The minimum price has been set at 301mn reais. The fate of other state banks - including Nossa Caixa (Sao Paulo), Banrisul (Rio Grande do Sul) and Banpara (Para) - has not been decided yet by the respective state governments.