UPDATE 1-OHL Mexico share buybacks on hold until after probe -CEO
(Adds context, Hidalgo comments, background)
MEXICO CITY, June 2 (Reuters) - Construction company OHL Mexico will wait for the results of government audits of its contracts before continuing negotiations on terms of some of the agreements, Chief Executive Sergio Hidalgo said in a conference call on Tuesday.
Shares in the company have been hit in the last month by leaked recordings of individuals alleged to be OHL Mexico officials, discussing overcharging for public works and making a hotel payment for a state government official.
As a result, the company's current contracts are being reviewed by the State of Mexico government and the federal government.
OHL Mexico said the recordings had been manipulated to discredit the company.
Hidalgo said the company could not activate a share repurchase program until investigations into the recordings had been completed.
"We would love, of course, to exercise that option and actually to increase if possible," he said. "But we cannot activate it until all investigations are over."
Fitch ratings agency said it was revising the credit rating of OHL Mexico's Spanish parent company OHL for a possible downgrade.
Shares in OHL Mexico rose 3.86 percent on Tuesday, to reach 22.34 pesos at 1.48 p.m. local time. (Reporting by Cyntia Barrera and Tomas Sarmiento; Writing by Max de Haldevang)
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