Goldman Sachs Comments on News of Fibria Celulose SA Accepting Proposal From Brazilian Government

In a report published Friday, Goldman Sachs analyst Marcelo Aguiar reiterated a Neutral rating and $13.10 price target on

. In the report, Goldman Sachs noted, “On November 28, Fibria issued a press release after the market close stating that it accepted Brazilian Government's proposal to settle accumulated tax liabilities on foreign subsidiaries' profits until December 31, 2012. Fibria will recognize R$560mn of liabilities, which are to be booked in 4Q13 and the cash outflow will be R$392mn. The company's decision to pay the tax liabilities by December 31 will remove all interest/fines/charges and will also permit Fibria to use the fiscal loss to amortize the outstanding balance. We expect this to be a one-off payment before end 2013 and does not impact the company's outlook for tax payments over the next five years given the company would still have accumulated losses/goodwill that could bring its effective tax payments close to zero.” Fibria Celulose SA closed on Wednesday at $12.22.