Brazil-Meat Merger looks like a starter.

BRAZIL- MEAT MERGER LOOKS PROMISING.

Sadia SA Chairman Luiz Fernando Furlan said there may be an announcement next week about a possible merger with Perdigao SA, combining Brazil’s two largest food processors, O Globo newspaper reported.

The only obstacle to the negotiations is how the two companies handle the exchange of shares, Furlan said, according to Globo.

Perdigao Chief Executive Officer Jose Antonio do Prado Fay denied yesterday that the company is holding talks with Sadia, Globo said.