JBS SA, the world’s largest beef producer, fell the most since 2009 after a report that former shareholder Grupo Bertin is involved in Brazil’s largest ever corruption scandal.
The shares fell 9.2 percent to 10.40 reais at the close of trading in Sao Paulo, the second-worst performer on the Ibovespa benchmark, which retreated 1.5 percent. JBS has fallen 16 percent in the past four sessions, its longest losing streak in a month.
O Estado de S.Paulo newspaper reported Wednesday that federal police are investigating links between Bertin and a bribery scheme that aimed to fund political campaigns. The newspaper cited a document written by a police official, part of the so-called Carwash investigation. JBS declined to comment on the Estado report when contacted by Bloomberg News, while Grupo Bertin couldn’t immediately be reached for comment.
“JBS has been struggling with news on the Carwash probe amid possible irregularities,” said Luis Gustavo Pereira, an analyst at Guide Investimentos brokerage in Sao Paulo. “Even with no concrete evidence, caution leads investors to make this move.”
Bertin was a shareholder of JBS’s parent FB Participacoes SA up until 2014, when it sold its stake in the company.