Batista's Coal Unit CCX Slumps on Report of CEO Exit

CCX Carvao da Colombia SA, the coal company controlled by Brazilian billionaire Eike Batista, fell to a record low after a magazine columnist reported its chief executive officer resigned. The company denied the report.

The shares dropped 5.2 percent to 2.92 reais at the close in Sao Paulo, the lowest since it began trading in May. The Rio de Janeiro-based company, which develops mining projects in Colombia, was the worst performer today on the Bovespa Small Cap index.

EBX Group Co., the holding company for most of Batista’s assets, denied a report that CEO Leonardo Moretzsohn had resigned, according to an e-mailed statement today. Lauro Jardim, a columnist for Brazilian magazine Veja, reported the resignation on his blog today, without saying how he obtained the information.

The possible exit of CCX’s CEO brings further instability to the stock after a recent drop, said Aloisio Lemos, a Rio-based analyst at brokerage Agora Corretora.

“CCX is a project in a very initial stage,” he said in a phone interview. “That possible change of executives brings in additional tension for the stock.”

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