Barazil-Meat merger back on the table.

BRAZIL-BEEF GIANTS RESUME TALKS.

Brazilian food company Perdigao (PRGA3.SA) said on Friday that it had resumed talks with its domestic rival Sadia (SDA.N) (SDIA4.SA) over a possible business association.

The talks were intended to "explore the possibility of an association between both companies," Perdigao said in a statement to the securities and exchange commission CVM.

Perdigao said there was no timeframe for the talks, which had broken off last month, nor should the market see them as a commitment by Perdigao to reach a deal.

Analysts said that pension funds, which hold shares in both companies, were pushing for a tie-up.

Sadia , Brazil ’s largest meat processor, posted a 2.48 billion reais ($1.13 billion) loss last year on steep currency derivatives losses. It was the first annual loss in its 64-year history.