UPDATE 2-Usiminas board blocks results release after CEO departure

viernes 13 de febrero de 2015 11:03 GYT

(Adds share price, views of why results release delayed)

By Stephen Eisenhammer and Alberto Alerigi

RIO DE JANEIRO Feb 13 (Reuters) - The board of Brazil's Usiminas on Friday blocked the release of fourth-quarter results, as the steelmaker reels from the departure of its previous chief executive over bookkeeping concerns that sparked a battle between controlling shareholders.

Usinas Siderurgicas de Minas Gerais SA, as the company is formally known, was supposed to release financial results on Friday morning.

The company informed investors minutes before markets opened of the decision of the board not to approve management's report of the quarterly results.

The board also rejected management's proposed divided payment for 2015, the statement said, without giving reasons for either move.

Following Usiminas' announcement, the company's preferred shares fell 4 percent in early trade, but were up 0.6 percent in early afternoon trading in São Paulo.

Usiminas - which is Brazil's largest flat steelmaker - did not set a new date for a release for the quarterly report. Flat steel is used extensively in the auto and appliance industries.

One source familiar with the matter told Reuters the board unanimously voted against publishing the results due to accounting questions over some items. However, a second source said the board vote had more to do with the power struggle at the steelmaker than accounting, adding that auditor Ernst & Young had signed off on the numbers.   Continuación...