Bloomberg News reports that Raizen owners have ended talks to save struggling sugar producer.

Bloomberg News reported that talks to rescue Brazilian sugar producer and ethanol maker 'Raizen' have broken down after Cosan and Shell failed to agree on a plan to raise capital.

Shell's Brazil CEO had earlier in the day said that the company would invest 3.5 billion reais (662.75 millions)?into the world's biggest sugar producer. It also stated that another?shareholder was expected to be able bolster Raizen's fortunes by a?additional 3.5 billion reais investment.

Shell rejected some of Cosan's 'other offers,' the report stated, citing an individual.

The report stated that private equity funds managed Banco BTG Pactual, who were also involved in the discussions, did not agree with Shell's terms and decided against injecting money into Raizen.

Raizen, Cosan and Shell didn't immediately respond to requests for comment. Could not verify the report immediately.

Raizen reported a net loss of 15,6 billion reais for the quarter ending last month and warned that it was "significantly uncertain" of its ability to continue operating.

Raizen's net debt reached 55.3 billion reais at the end of December, due to a combination of erratic weather, heavy investments and wildfires that led to lower crushing volumes and weaker harvests. ($1 = 5,2810 reais). (Reporting and editing by Sonia Cheema, Subhranshu Shu.)

(source: Reuters)