(Repeats story published on Sept. 6 with new story number)
By Lisandra Paraguassu
RIO DE JANEIRO, Sept 6 Shares of Brazil's Forjas
Taurus SA, the largest gun maker in Latin America,
plunged on Tuesday after the company confirmed a Reuters report
on Monday that two former executives were charged with selling
arms in violation of a U.N. embargo.
Taurus confirmed sealed charges against two executives who
allegedly sold weapons to a known Yemeni arms trafficker accused
of funneling them into his country's civil war, but the company
said it was only a concerned party in the case.
Shares of the gun maker fell 8 percent on Tuesday, their
biggest drop in 16 months.
Prosecutors in the southern city of Porto Alegre, near
Taurus headquarters, also confirmed charges against the two
former executives. They quickly retracted an earlier statement
after markets closed on Tuesday that Taurus had been charged.
"Although the company and its management are not parties in
the proceedings, as soon as the company learned of the case,
which could harm its reputation, it requested and was granted
the status of concerned party to clarify the facts and help the
investigation," Taurus said in a late Monday securities filing.
Taurus reiterated on Tuesday that it was not a defendant in
The plunging shares underscore reputational risks for the
weapons maker, which benefits from its designation by the
Brazilian government as a strategic defense company.
Taurus is a major supplier of firearms to Brazil's police
and military and one of the top five makers of handguns in the
U.S. market, where it sells nearly three-quarters of its output.
(Reporting by Lisandra Paraguassu; Writing and additional
reporting by Brad Haynes; Editing by Alan Crosby)