SAO PAULO Feb 7 Shares in JBS SA, the world's
biggest beef exporter, tumbled on Tuesday after prosecutors
demanded that Joesley Batista step aside as head of JBS
controlling shareholder J&F Investimentos SA.
Common shares fell as much as 6.2 percent to
11.29 reais in early trading before paring losses to 11.85 and
was still the biggest decliner on Brazil's benchmark Bovespa
Prosecutors allege Batista and José Carlos Grubisich Filho,
chief executive officer of J&F-controlled pulp producer Eldorado
Brasil Celulose SA, breached an agreement related to an
investigation of fraud at state-run companies' pension funds.
Prosecutors petitioned a judge to reimpose preventive
measures against both executives, requesting the court block as
much as 3.8 billion reais ($1.2 billion) worth of their assets.
The probe is one in a string of investigations into
corruption in Brazilian business and politics, which have
rattled Latin America's largest economy and fed political
Last September, a federal judge ordered Batista and his
brother Wesley Batista, who runs JBS, to suspend their corporate
roles, avoid all capital market activity and forfeit their
passports in order to avoid jail.
A week later, the Batistas agreed to deposit 1.52 billion
reais in guarantees to overturn the decision, allowing them to
return to their posts.
($1 = 3.13 reais)
(Reporting by Bruno Federowski; Editing by Jeffrey Benkoe)