Banco do Brasil SA and the Ermirio de Moraes family may invest 3 billion reais ($1.5 billion) in Banco Votorantim SA after higher bad-loan provisions, O Estado de S. Paulo reported, without saying how it got the information.
Banco do Brasil and the Ermirio de Moraes family, which share control of Votorantim, plan to invest 2 billion reais this year, with the remainder to be added next year, the Sao Paulo- based newspaper said. Each shareholder would contribute half of the amount in a private placement, O Estado said.
Banco do Brasil declined to comment, the newspaper said. The Ermirio de Moraes family told O Estado in an e-mailed statement that it is prepared for a capitalization of the unit.
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