Shares in Cielo SA, Brazil's largest card payment processor, posted on Tuesday their steepest intraday plunge in more than two years after a federal court ordered the company to stop using its brand within 180 days. According to a spokesman for Judge Márcia Maria Nunes de Barros of the 13th Federal District of Rio de Janeiro, Cielo illegally began using the "Cielo" brand following a dispute with swimmer Cesar Cielo over the use of naming rights. The dispute began in 2012 and extended from the alleged use of the swimmer's surname in its advertising campaigns to problems over a sponsorship contract between the parties.
Cielo plans to appeal the ruling, the company said in a statement.
Shares of the Barueri, Brazil-based company fell 6.5 percent to 38.58 reais. The last time the company posted a bigger drop was on Sept. 28, 2012, when the stock shed 7.3 percent.
Tuesday's decline pared back gains in Cielo to 30.3 percent so far this year. (Editing by Meredith Mazzilli)