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Brazil banks slump, blog says Odebrecht mulls bankruptcy protection, company denies

Published 21/07/2016, 19:41
© Reuters. A sign of the Odebrecht SA construction conglomerate is pictured in Lima
IFNC
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SAO PAULO (Reuters) - Shares in Brazil's largest listed commercial lenders posted their biggest drop in a month on Thursday on a financial blog report that Odebrecht SA could be considering filing for bankruptcy protection, which the company denied.

An index grouping banking and financial shares trading in the São Paulo Stock Exchange (IFNC) dropped as much as 2.1 percent after blog Brazil Jornal said Odebrecht [ODBES.UL] is consulting some renowned law firms to advise on an in-court reorganization. The blog did not say how it obtained the information.

© Reuters. A sign of the Odebrecht SA construction conglomerate is pictured in Lima

Odebrecht, the country's largest engineering conglomerate, denied the report, saying its negotiations with banks continue to be positive and that its restructurings and asset sales are making progress.

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