SAO PAULO, Nov 14 (Reuters) - Brazil’s three largest pension funds have joined an arbitration case against state-controlled oil company Petróleo Brasileiro SA, seeking compensation for losses related to a corruption scandal, a national newspaper reported on Tuesday.
Pension fund Previ Caixa de Previdência, Funcef, and Petros Fundação have joined the case, Valor Econômico reported without citing sources. The funds represent employees at Banco do Brasil , Petrobras, as Petroleo Brasileiro is known, and state-bank Caixa Econômica Federal, respectively.
With the funds added, the process will significantly increase the value of claims in the case, which will be held in an arbitration chamber of Sao Paulo’s B3 stock exchange. Petros alone has estimated it stands to win 4 billion to 7 billion reais ($2.1 billion), Valor reported.
Brazilian pension funds, including Previ, Funcef, and Petros, accumulated heavy losses from their investments in the last two years, particular from owning shares of Petrobras and others being investigated in Brazil’s ‘Car Wash’ corruption scandal.
Previ, Funcef, and Petros could not be reached immediately for comment. ($1 = 3.27 reais) (Reporting by Gram Slattery; Editing by Jeffrey Benkoe)