Sadia SA, the Brazilian poultry exporter struggling with debt from derivatives losses, is holding talks for a possible partnership with rival, Perdigão SA, according to Bloomberg.

Based in Concordia, Brazil, Sadia has not yet reached any agreement with Perdigão, the company said in a regulatory filing. The talks are part of conversations it has been holding with "many" possible partners, Sadia said.

Perdigão confirmed the on-going talks in a releasae to the market on their website, but said they were at a preliminary stage and no agreement had yet been erached.