Gerdau Loses 4%, Reports Indicate Company's Office Raided In Tax Corruption Operation

Shares of Gerdau SA (ADR) GGB, a Brazil-based producer of long rolled steel, fell more than 4 percent on Thursday following media reports the company's office has been raided by federal police.

According to Reuters, Brazilian officials raided Gerdau's office and issued an arrest warrant for its CEO. The company is accused of willingly evading 1.5 billion reais ($380 million) in back taes.

Reuters noted that a police spokesperson for Brazil's police confirmed a warrant exists for the arrest of Gerdau's CEO, Andre Gerdau Johannpeter. The publication added that the executive had agreed to appear voluntarily to speak with the authorities.