Govt. sets US$26mn bidding tag for BEM

The Brazilian government said in a statement it has set 77.2mn reais (US$26.3mn) as the minimum bidding price for the upcoming auction of Maranhao state bank Banco do Estado do Maranhao (BEM). Local press highlighted the fact that it is the first minimum price the government of Luiz Inacio Lula da Silva has announced for several state banks waiting to be privatized. Banco GE Capital, Bradesco (NYSE: BBD), Itau (NYSE: ITU) and Unibanco (NYSE: UBB) have pre-qualified to bid for the 90% stake in BEM, which will go under the hammer on February 10 on the Sao Paulo stock exchange. BEM is one of the largest banks in the state of Maranhao with a distribution network consisting of 76 branches.