Sunday, 28 August 2016
Last updated 1 day ago
Oct 26 2010 | 1:37pm ET
Details of JPMorgan Chase's deal for Brazilian hedge fund Gávea Investimentos are leaking out in advance of the firm's expected announcement tomorrow.
JPMorgan will pay as much as US$800 million for the firm, founded by former Brazilian central bank governor Armínio Fraga, the Folha de S. Paulo newspaper reports. Initially, the U.S. bank will take a 55% stake in Gávea, with the option to acquire the rest of the firm over the next five years.
Gávea will actually be acquired by Highbridge Capital Management, JPMorgan's $21 billion hedge fund arm, the Financial Times reports.
Gávea, which manages about US$6 billion, was founded seven years ago by Fraga, who is also the chairman of the São Paulo stock exchange. Fraga has agreed to remain with Gávea for at least five years after the close of the deal.
Fraga refused to comment on the deal at a corporate governance seminar in Rio de Janeiro today,