(Recasts lead, adds implication of leniency)
SAO PAULO Dec 2 Shares in Braskem SA soared 10
percent in their biggest intraday gain in more than two months
on Friday after Latin America's largest petrochemical firm said
it is in advanced talks with authorities in Brazil and the
United States for a leniency agreement related to a massive
Class-B preferred shares, Braskem's most widely
traded class of stock, rose 9.77 percent to 29.77 reais ($8.62)
after the announcement, the highest intraday rise since Sept.
Braskem did not provide additional details of the leniency
talks in the statement. On Thursday, Braskem's parent Odebrecht
SA signed a $2 billion leniency deal with prosecutors
to settle its own liabilities in Brazil's biggest-ever graft
The imminent agreement could help disentangle a series of
aspects preventing controllers Odebrecht SA and Petroleo
Brasileiro SA to sell their stakes in Braskem, as it
could eliminate liabilities related to the corruption probe,
making it easier to attract a bidder.
The so-called Car Wash probe, started by prosecutors in
Brazil in 2014, unveiled a sweeping graft scheme involving
several construction companies and state-controlled Petroleo
Brasileiro SA, known as Petrobras. Petrobras owns a
47 percent voting stake in Braskem.
Reuters reported in March that Odebrecht, which owns 50.1
percent of the voting shares in Braskem, was considering selling
a stake in the petrochemical producer in a joint transaction
Under terms Odebrecht's agreement, the firm will pay the
hefty fine over 20 years. The money will be divided between
authorities in the United States, Switzerland and Brazil, which
would be the main beneficiary.
($1 = 3.4552 reais)
(Reporting by Ana Mano; Editing by Jane Merriman and Marguerita