Bloomberg News

B2W Declines on Brazil Government Probe Into Product Delays

June 10, 2011

(Updates share price in third paragraph.)

June 10 (Bloomberg) -- B2W Cia. Global do Varejo fell after Brazil’s Justice Ministry requested information on delays in deliveries from the company’s online unit Americanas.com.

B2W, a unit of Brazil’s biggest discount retailer Lojas Americanas SA, has 10 days to provide information its deliveries, the ministry said in an e-mailed statement today. The ministry wants to find out if B2W goods are facing delays across the country after the Rio de Janeiro-based company was banned from selling products in its home state because of the problems, according to the statement.

B2W declined 2.7 percent to 21.50 reais at the close of Sao Paulo trading. The shares have retreated 31 percent this year, compared with a 9.5 percent fall for the benchmark Bovespa index.

“This could lead to a huge loss if they find delays in other states,” Caue Pinheiro, an analyst with SLW Corretora, said in a phone interview from Sao Paulo, adding he didn’t know whether the company had delays outside Rio. “They’d have to pay a fine if they keep taking orders.”

--Editors: Brendan Walsh, Glenn J. Kalinoski

To contact the reporter on this story: Laura Price in London at lprice3@bloomberg.net

To contact the editor responsible for this story: David Papadopoulos at papadopoulous@bloomberg.net


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