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Brazil's Totvs says Linx dismisses merger agreement

Brazilian software firm Totvs SA said in a securities filing late on Monday that Linx SA has decided not to go through with a merger agreement.

SAO PAULO, Sept 22 (Reuters) - Brazilian software firm Totvs SA TOTS3.SA said in a securities filing late on Monday that Linx SA LINX3.SA has decided not to go through with a merger agreement.

Linx's independent directors told Totvs that a merger protocol would violate an association agreement it has forged with card processor StoneCo Ltd STNE.O, according to the filing.

Totvs and StoneCo are in a bidding war for Linx.

"Linx's special committee has only been showing disposition to delaying or even preventing the equitable analysis of Totvs' proposal by Linx's shareholders' meeting, thus forcing shareholders to deliberate on StoneCo's proposal," Totvs said.

(Reporting by Carolina Mandl, editing by Louise Heavens)

((carolina.mandl@thomsonreuters.com; +55 11 5644 7703; +55 11 97116-3806;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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