Brazil’s federal government is working behind the scenes to encourage a takeover of América Latina Logística SA, the country’s largest railroad operator, by a company that would invest in the nation’s dilapidated rail network, daily o Estado de S.Paulo reported.

Brazil’s national development bank BNDES will meet on Friday with directors of Cosan SA Indústria e Comércio to gauge its desire to resume talks to buy a controlling stake in the railroad, known as ALL, Estado reported, citing unnamed sources.

A spokesman for BNDES declined to comment on the report. A spokeswoman for Cosan also declined to comment. A spokeswoman for ALL said the company would not comment beyond its statement on Thursday.

In a securities filing on Thursday, ALL said it was considering “alternative solutions” to a long-running dispute with Rumo Logística, a logistics company already controlled by Cosan.

In addition to providing further financing for ALL, a deal between the two companies would settle the commercial dispute with Rumo Logística over the transportation of sugar. ALL and Cosan have had inconclusive talks about a tie-up in the past. (Reuters)