Brazil's antitrust regulator denied on Friday that it will ask the courts to name an auditor for Brasil Foods (BRFS3.SA)(BRFS.N), a food processor it is scrutinizing for excess market power. Valor Economico newspaper reported on Friday that the agency, known as Cade, was considering the move to ensure the company abides by restrictions on market concentration. The newspaper did not say how it obtained the information. Cade is currently reviewing whether the creation of Brasil Foods in 2009, through a takeover of Sadia by rival Perdigao, resulted in a company with too much pricing power in the food processing market. A councilor at Cade recently said the takeover would harm competition and lead to higher prices, stoking concerns the transaction could be rejected. "That type of mechanism is only implemented after a ruling (on the combination), with the existence of restrictions and the failure of the company to meet such restrictions," a Brasilia-based Cade spokesman said in an emailed statement.
BRF - Brasil Foods S.A. (BRF) is a food company, which focuses on the production and sale of poultry, pork, beef cuts, milk, dairy products and processed food products under several brands. Shares of BRFS fell by 2.1% or $-0.35/share to $16.35. In the past year, the shares have traded as low as $12.75 and as high as $20.79. On average, 2363530 shares of BRFS exchange hands on a given day and today's volume is recorded at 1045601.
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