Brazil's Camargo Correa chairman quits amid asset sales
- Consumer staples stocks help Wall St. pare some losses
- BAT Reaches Deal to Acquire Reynolds American (RAI) for $49 Billion
- Verizon Communications (VZ) May Acquire Big Cable Company - NYP (CHTR) (CMCSA)
- Citron Research Negative on Lannett (LCI); Sees Shares at 'Zero' Over Long Term
- Einhorn's Greenlight Mentions Caterpillar (CAT) Short in Q4 Letter; Doesn't See Disney (DIS) Buying Netflix (NFLX)
A car drives into a tunnel constructed by Camargo Correa in Sao Paulo January 8, 2010. REUTERS/Paulo Whitaker
Find out which companies are about to raise their dividend well before the news hits the Street with StreetInsider.com's Dividend Insider Elite. Sign-up for a FREE trial here.
SAO PAULO (Reuters) - Vítor Sarquis Hallack has stepped down as chairman of Camargo Correa SA [PMORRC.UL] as the investment holding company that controls the construction firm engulfed in the country's worst corruption scandal exits some business segments.
Camargo Correa, which was founded in 1939 as a civil construction company, said on Friday that Hallack will act as an adviser to the company, without elaborating. The statement did not say whether a replacement has been named.
According to O Estado de S. Paulo newspaper, which first reported the resignation on Friday, Camargo Correa is intensifying the search for a replacement for Hallack, who was in his post for about 10 years. The grandchildren of founder Sebastião Camargo occupy most of the board seats.
"The integration of the controlling family's third generation into the command of the holding company is the natural path and the result of long-term planning," Hallack said in a statement.
A spokesman for São Paulo-based Camargo Correa did not respond to repeated requests for comment.
Hallack's departure comes a year after Camargo Correa agreed to pay 800 million reais ($249 million) in damages from a corruption scheme at state companies. Its executives were the first to admit taking part in the scheme, which has also accelerated the downfall of President Dilma Rousseff's government.
Camargo Correa is Brazil's No. 2 construction company after Odebrecht SA [ODBES.UL], which is also involved in the so-called Car Wash scandal.
Under Hallack, Camargo Correa diversified from the core construction business further into cement, toll roads, fashion and electricity. A former Vale SA
The youngest Camargos have pushed to sell some of the businesses if bids look attractive, Estado reported. In recent months, Camargo Correa has divested stakes in power holding company CPFL Energia SA
($1 = 3.2297 Brazilian reais)
(Reporting by Guillermo Parra-Bernal; editing by Lisa Von Ahn and Jeffrey Benkoe)
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Lithuania to build fence along border with Russia's Kaliningrad
- Swiss watchmakers cautiously optimistic for U.S., China in 2017
- Upbeat Boeing CEO says meeting with Trump 'very productive'
Create E-mail Alert Related CategoriesReuters
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!