Brazilian health-insurance broker Qualicorp SA sank the most on record after a report that its founder and chairman is being targeted in a money-laundering investigation led by federal police. The company denied the report.
The shares tumbled 20 percent to 19 reais Friday in Sao Paulo, reaching the lowest since they were issued in 2011.
“For Qualicorp today, it’s the rumors involving its founder that pushed shares lower,” Luis Gustavo Pereira, an analyst at Guide Investimentos, said by phone from Sao Paulo.
O Globo newspaper reported on its website that Qualicorp founder Jose Seripieri Filho is being investigated by Brazilian authorities as part of a broader examination of alleged money laundering. The federal police said in its website that it conducted 90 search warrants on Friday related to the probe, without identifying the people involved.
Qualicorp’s press office said in an e-mailed statement that the article is wrong, and that Seripieri Filho isn’t under investigation for money laundering.