Source:  Tom Johnston, MEATINGPLACE.COM, 1/4/11

JBS S.A. on Monday cancelled an initial public offering of its U.S. unit, JBS USA Holdings Inc.
The company said in a filing with the Securities and Exchange Commission that “it does not intend to pursue the contemplated public offering at the current time” and asked for approval to withdraw the related registration statement.

JBS did not say specifically why it was pulling the plug on the IPO. First announced at the end of 2009, the offering was delayed twice amid poor economic conditions and lax demand in the IPO market.

However, JBS announced last week it is on the verge of selling $2.36 billion of 8.5 percent-interest debentures to Brazil’s state development bank, BNDES, that are convertible into shares in five years. The deal would allow JBS to replace debt BNDES holds and thereby eliminate the need for an IPO.

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