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Common shares of Brazil's Unipar rise, preferred shares fall after Apollo bid reports

Common shares of Brazilian chemical company Unipar Carbocloro were up 5.8% on Monday afternoon after reports of a potential sale of the company, while preferred shares of Unipar reversed direction and were down more than 4%.

By Tatiana Bautzer

SAO PAULO, June 7 (Reuters) - Common shares of Brazilian chemical company Unipar Carbocloro UNIP3.SA were up 5.8% on Monday afternoon after reports of a potential sale of the company, while preferred shares of Unipar reversed direction and were down more than 4%.

U.S. asset manager Apollo Global Management Inc APO.N has made an offer to acquire the company, one source with knowledge of the matter told Reuters. Two other groups are interested, added the source, who asked for anonymity to disclose private talks.

The source said the controlling shareholder in Unipar, holding company Vila Velha, has not yet decided on whether the deal would be a sale or a potential merger that would avoid a change of controlling shareholders.

Vila Velha hired investment boutique Essentia Partners to manage the sale process, according to the source. Brazilian newspaper Valor Economico reported the potential deal over the weekend.

Unipar and Vila Velha declined to comment. Apollo did not immediately reply to a request for comment.

One of the reasons Vila Velha might consider a sale is Unipar's market capitalization, which is at historical highs, the source added. On Monday, the company was valued at close to 10 billion reais ($1.98 billion) on the B3 stock exchange.

(Reporting by Tatiana Bautzer in Sao Paulo Editing by Jonathan Oatis and Matthew Lewis)

((tatiana.bautzer@tr.com; Tel: +55-11-5644-7756; Mob: +55-119-4210-4173; Reuters Messaging: tatiana.bautzer.thomsonreuters.com@reuters.net))

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