Brazil Disciplines Laep for Quiet Period Breach

Brazil’s market regulator, the CVM, halted the IPO procedures for Laep Investments, a Bermuda-based private equity firm run by Brazilian executives, for 15 days because of remarks the executives made to local papers Valor Econômico and Folha de São Paulo last week. In a letter posted its website, the CVM cites quotations by Marcus Elias, president of the board of Parmalat Brasil, Laep’s most significant portfolio company, and João Audi, president of the same company, that explain parts of the company’s restructuring strategy and highlight its strong points with remarks that can very easily be construed as forward looking statements. In order to allow the information to filter through the market, says the CVM, it has suspended the procedure for 15 days, and the process will continue September 14. UBS Pactual is leading the deal, which will include BDRs.