NEW YORK (TheStreet) -- Banco Bradesco (BBD) shares are down 1.35% to $8.79 in afternoon trading on Tuesday following reports that the company is a bidder for HSBC's (HSBC) Brazil unit.
Banco Bradesco, Brazil's second largest private sector bank, is the highest bidder for the HSBC unit, according to Bloomberg.
The bank could pay up to $4.5 billion for the unit, according to reports.
If the deal is approved by regulators this quarter, the company's Tier 1 capital ratio would fall to 10.1 from 12.1, analysts at UBS said, according to Reuters.
HSBC is expected to announce the winning bidder sometime this month.