Nov. 1 (Bloomberg) -- Anhanguera Educacional Participacoes SA, Brazil’s largest education company by market value, dropped the most in four weeks after its chief executive officer resigned, spurring Banco BTG Pactual SA to lower its recommendation.
Shares slumped 9 percent to 22.99 reais at 11:47 a.m. Sao Paulo time, the most intraday since Oct. 4. The benchmark Bovespa index fell 3.3 percent.
Anhanguera said in a statement today that CEO Alexandre Silveira Dias had resigned. He’ll be replaced by Ricardo Leonel Scavazza, who previously held the position of deputy finance director, according to the statement.
“Management resignations normally lead to uncertainties,” and Silveira Dias’ case was “worsened by Anhanguera’s weak second quarter and recent share underperformance,” Banco BTG Pactual SA’s analysts JC Santos and Pedro Montenegro wrote in a note to clients today.
BTG Pactual cut the stock from “buy” to “neutral” following the CEO’s resignation.
Anhanguera tumbled 37 percent this year through yesterday, while the Bovespa index fell 16 percent in the same period. The company reported second-quarter net income of 8 million reais ($4.6 million), a 10 percent drop from a year before, according to a regulatory filing Aug. 16.
--Editors: Marie-France Han, Richard Richtmyer
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