Embraer Tumbles in Brazil After Report on Bribery Allegationsby
Consultant said top managers knew about payments, WSJ reports
Planemaker says it's fully cooperating with the investigation
Embraer SA fell after a report that a company consultant told prosecutors he believed top managers including Chief Executive Officer Frederico Curado knew about illicit payments made on behalf of the planemaker.
Shares dropped 2.4 percent to 22.86 reais at 11:19 a.m., after tumbling as much as 6.4 percent. It was one of only three stocks declining in Brazil on Thursday while the benchmark Ibovespa index advanced 4.6 percent.
Embraer’s highest-ranking executives knew sales consultant Elio Moti Sonnenfeld was paying bribes tied to the sale of aircraft in the Dominican Republic, the Wall Street Journal reported late Wednesday, citing official summaries of Sonnenfeld’s statements.
The planemaker said in an e-mailed statement that it was unable to comment on the accusations because the article “is based on allegations that apparently were leaked from a confidential statement from a defendant in a lawsuit that is under seal in Brazil and not available to the company.”
Embraer “maintains a regular process for the review of allegations and will continue to take appropriate action as circumstances may require,” according to the e-mail. Embraer is cooperating with the inquiry and reported the confidential findings of an independent internal investigation to authorities, the company said.