June 29, 2016 / 4:36 PM / 2 years ago

BUZZ-Brazil's Hypermarcas slumps for 2nd day on bribery reports

** Shares of Hypermarcas SA slumped 8.5 percent on Wednesday and headed for its worst two-day slide since mid-2011 on reports a former executive admitted to paying bribes to politicians

** Over 11 million shares had traded hands by Wednesday afternoon, more than four times this month’s daily average

** Local newspaper O Estado de S. Paulo reported on Tuesday former institutional relations director Nelson Mello confessed to paying 30 million real ($9 million) to senators of the ruling PMDB party. Recipients included Senate President Renan Calheiros and former Planning Minister Romero Jucá, Estado said

** In a securities filing, Hypermarcas said an independent audit found that Mello authorized expenses on his own without providing proof of services rendered

** Hypermarcas shares fell 8.5 percent on Tuesday, the biggest loss in Brazil’s benchmark Bovespa stock index

** Mello could not be reached for comment. A spokeswoman for Jucá denied the report, while representatives for Calheiros did not respond to a request for comment. Hypermarcas said it is not the target of an investigation

$1 = 3.2450 Brazilian reais

0 : 0
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