BM&FBovespa SA (BVMF3) said the state of Rio de Janeiro plans to use the power of eminent domain to take over Rio’s Stock Exchange building in the downtown area to house the city’s legislature.
BM&FBovespa will take measures to guarantee it will be paid a “fair price” for the property, the company said in a regulatory filing today.
The building is home to the now extinct Rio Stock Exchange, acquired by BM&FBovespa in 2002, BB Gestao de Recursos DTVM SA, Latin America’s largest asset manager, and the Brazilian office of Fitch Ratings Ltd, among other firms. The building that currently houses Rio’s legislature, also in the downtown area, will become a cultural center, said communications director Luisi Valadao.
Brazil’s telecommunications agency, known as Anatel, also has an office in the building, and wasn’t included in the governor’s decree published April 10 authorizing the expropriation. The Rio state government will negotiate Anatel’s removal from the building separately, Valadao said.
Fitch said it wasn’t informed of the government’s plan for the building, according to its press office in Rio. BB Gestao de Recursos didn’t immediately respond to an e-mail sent by Bloomberg News requesting comment.
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