UPDATE 4-Brazil securities regulator fines tycoon Batista $432,000

miércoles 18 de marzo de 2015 18:38 GYT
 

(Adds total fines for Batista, decision and fine related to oil company OGX, likely time for appeal)

By Stephen Eisenhammer

RIO DE JANEIRO, March 18 (Reuters) - Brazil's securities regulator fined former billionaire Eike Batista 1.4 million reais ($432,000) for failing to promptly let investors know about a takeover and the delisting of parts of his once-giant EBX energy, mining, port and shipbuilding group.

The regulator fined Batista 300,000 reais ($93,000) because responses to media reports about a takeover of MPX Energia SA by Germany's E.ON SE were not clear enough and 500,000 because he did not keep the market properly informed about the delisting of his port operation and harbor real-estate company LLX Logística SA. MPX's name was later changed to Eneva SA.

He was also fined 300,000 reais for not properly informing the market about a potential delisting of coal mining company CCX Carvão do Colombia SA and 300,000 reais for failure to properly inform investors about the sale of assets at oil company OGX Petróleo e Gás Participações SA

Batista did not attend the hearing in the crowded 34th-floor CVM auditorium with a broad view of Rio de Janeiro and its famous mountains and bay for which he became poster-boy during a decade-long Brazilian commodities boom.

The judgments, among the five related to Batista's EBX group on the CVM docket Wednesday, Batista's lawyer, Darwin Correa, said he would appeal the decisions and fines. Correa said such an appeal usually takes about two years.

Most of the CVM complaints stem from the 2013 collapse of Batista's EBX oil, energy, port, shipbuilding and mining group. Investors have said Batista sold stock in his companies without properly informing other investors of difficulties that cut the value of EBX companies traded on the Sao Paulo stock exchange to nearly zero from a peak of about $60 billion.

The LLX complaint was in relation to a 2012 event.   Continuación...