Credit Suisse Probed by Brazil Regulator Over Terna

(Update2)

By Camila Fontana

Jan. 18 (Bloomberg) -- Credit Suisse Group AG, the largest Swiss bank by market value, is being probed by Brazil’s market regulator in relation to Terna Participacoes SA.

“Credit Suisse will respond to questions within the timeframe set by the regulator,” the bank said in a statement.

Terna, a Rio de Janeiro-based electricity company, was bought by Cia Energetica de Minas Gerais for 2.33 billion ($1.32 billion) in a purchase announced in April. The investigation is related to transactions that occurred last year, Credit Suisse said. Valor Economico reported that CVM is investigating purchases of Terna stock by Credit Suisse funds prior to the acquisition.

Credit Suisse and CVM declined to provide details of the investigation. A CVM spokeswoman who declined to be named because of government policy confirmed that the regulator opened an investigation of Credit Suisse.

CVM said on Jan. 15 that the bank’s Brazilian unit, Banco de Investimentos Credit Suisse SA, and its head of investment banking agreed to pay the Comissao de Valores Mobiliarios 180,000 reais to settle a case related to the initial public offering of OGX Petroleo e Gas Participacoes SA.

Credit Suisse paid 120,000 reais and Jose Olympio da Veiga Pereira paid 60,000 reais, CVM said. CVM had accused Credit Suisse of violating a mandatory quiet period before the OGX share sale. CVM commented by e-mail.

To contact the reporter on this story: Camila Fontana in Sao Paulo at cfontana@bloomberg.net

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