Twenty-four hours is a long time in the life of a deal, says Paulo Ferraz, president of Banco Bozano Simonsen, who has seen them from most sides. Over the last few years Bozano Simonsen has bought and sold privatization assets both for its own group and on behalf of the government and clients. Earlier this year the bank Meridional, based in the south of Brazil, was purchased as part of a long-term strategy of growing the asset base.
But etched firmly in Ferraz's mind is one of his early deals, the first Brazilian privatization when a large consortium, of which Bozano was part, bought the steel-maker Usiminas in 1991.
"Twenty-four hours before the auction we were still discussing who was going to put what in and still putting the shareholders' agreement in place," says Ferraz, who trained as a metallurgical engineer before deciding his future lay in banking. "The first time this happens you get scared you are not going to finish in time, but with experience you realize this is typical in major deals. Twenty-four hours is a long time."
The Usiminas deal was particularly fraught because the buyers were wary of the government's plans.