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UPDATE 1-Brazil's Hering rebuffs merger proposal from Arezzo

(Adds details on Hering, Arezzo)

RIO DE JANEIRO, April 14 (Reuters) - Brazil apparel retailer Cia Hering rejected an unsolicited tie-up offer from competitor Arezzo Industria e Comercio SA, it said in a Wednesday securities filing.

The board of Hering said the proposal, the terms of which were not disclosed, “was not in the best interests of shareholders,” according to the filing.

Hering added that it was maintaining its previously disclosed strategic plan and that the firm “continuously analyzes inorganic opportunities.”

Hering, based in the southern state of Santa Catarina, is a major, diversified clothing designer and retailer present mainly in Brazil. Arezzo, a major women’s footwear retailer, has 356 locations throughout Brazil, according to its website, and has ventured into apparel acquiring the Reserva brand last October for 715 million reais ($126.5 million).

Arezzo has a 7.4 billion-real ($1.3 billion) market capitalization at Brazilian stock exchange B3, whereas Hering is worth 2.8 billion reais ($495 million).

$1 = 5.6526 reais Reporting by Gram Slattery; editing by Stephen Eisenhammer and Diane Craft

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