Although both companies admitted that there had been discussions between them, Perdigão indicated that no agreement was reached and that there are no ongoing negotiations between them.
Rumors about a possible association between Perdigão and Sadia started late last year, when Sadia found itself in trouble after losing over $310 million dollars due to currency speculation, which resulted in the resignation of its president and vice president.
Those rumors got particularly strong last week, so much so that stock market values for both companies increased.
At the end of 2007 Perdigão bought Eleva, previously known as Avipal, and became the largest poultry and pig producer in Brasil, finally surpassing Sadia, its longtime rival. Ironically, it was in mid 2006 that Sadia attempted a hostile takeover of Perdigão, which ultimately failed.