SAO PAULO, Nov 27 (Reuters) - Brazilian financial tech

firm StoneCo ( STNE ) has received multiple nonbinding offers

for its software unit Linx, but the bids so far are below what

it paid for the asset in 2020, according to three people

familiar with the negotiations.

StoneCo ( STNE ), which is listed in New York, bought Linx for 6.7

billion reais ($1.14 billion) four years ago.

As of now, 20 potential bidders have signed non-disclosure

agreements to have access to information regarding the sale, two

of the people told Reuters.

The companies include Brazilian software firm Totvs SA

and Canada's Constellation Software ( CNSWF ),

according to the same sources.

Of the 20, six firms have made non-binding offers, the

sources said.

Totvs this week confirmed an ongoing process which may

result in a nonbinding proposal. The firm said it has not yet

made an offer to buy Linx.

Constellation did not immediately reply to requests for

comment.

StoneCo ( STNE ) declined to comment.

A person familiar with the bidding process said some offers

made so far were more than 50% lower than what StoneCo ( STNE ) paid for

Linx four years ago. Another source said there were bids higher

than that, noting that StoneCo ( STNE ) would probably not consider

selling Linx for much less than 5 billion reais.

Reuters reported in September that Stone had hired

investment banks J.P. Morgan and Morgan Stanley to sell Linx.

The company later confirmed it had hired advisers to explore

options regarding its software business, without setting a

deadline for any kind of deal.

Stone is in a comfortable financial position and has no

urgency to sell Linx, one of the people familiar with the talks

said.

Earlier this month, StoneCo ( STNE ) authorized a share repurchase

program of up to 2 billion reais.