BB Opens Exit Door on Seguridade IPO

Investors who have already put in bids for Banco do Brasil’s carve-out of its insurance unit can pull their orders, the bank says in a statement to the market after the regulator suspended the deal for 30 days. The company declines to comment on the new timing for the IPO of BB Seguridade. The carve-out was due to be finalized this month and was set to be worth more than BRL9bn ($4.5bn). The regulator, CVM, told the bank to hold the transaction for 30 days from April 12 after finding it used non-approved marketing materials. Banco do Brasil, BTG Pactual, Bradesco, Citi, Itau and JPMorgan are global coordinators, with Brasil Plural and Banco Votorantim joint bookrunners.