This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Itau Unibanco's CEO Discusses Redecard's Public Tender Offer (Transcript)

I would like to start saying that we confirm, as announced, the price of 35 reais per share which is inside the range that Rothschild appraised, so we basically confirm our previous announcement on price; but we changed an important condition on the offer which is the fact that we will only go through as long as we have two thirds of the free float shareholders registered in the offer agreeing with our offer.

And we decided if we do not achieve this level of agreement among shareholders registered, we will keep the company in the Novo Mercado situation. This decision I think is an important decision and basically the decision among the requirement of many shareholders of Redecard to us that they would like to see Redecard staying in the Novo Mercado if we are not fully successful in our offer.

I would like to exchange with you some of the views on the acquiring business and Redecard in particular, which are very important because especially here in Brazil I believe that many people do not understand exactly the fundamentals and the forces that move the pieces. As you know until the ‘80s Redecard did not exist; Credicard was a company that issued cards and had the acquiring powers in Brazil, the exclusivity already at that time. In ‘95, ‘97, Credicard was divided in three companies: Redecard itself, as we know, which was the acquiring business; Credicard, which was the issuer; and Orbital, the processor. The three businesses from then on started to move isolated although the shareholders of the three were the same.

Redecard held the exclusivity for the MasterCard brand and this was an important competitive advantage that Redecard had throughout that period until last year (inaudible) 2010 when this was not anymore allowed in Brazil. So Redecard had this exclusivity on MasterCard brand and that made it for Redecard very easy to affiliate commerce and stores that were interested in doing business with Credicard, MasterCard holders. This was a very important thing and as long as you had in the market MasterCard cards issued Redecard would have a very solid business.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,550.69 -47.51 -0.27%
S&P 500 2,093.32 -4.72 -0.22%
NASDAQ 5,105.5460 -9.8360 -0.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs