Q: Hi 5i, "...Brookfield Corp. scrutinized for stake in Peru toll road project plagued by allegations of ‘corrupt practices’..."
https://www.thestar.com/business/brookfield-corp-scrutinized-for-stake-in-peru-toll-road-project-plagued-by-allegations-of-corrupt/article_9629182a-a364-11ef-8826-2b980726b1dd.html
There are many proofs that indicates Brookfield knew about Odebrecht corruption in Peru and went ahead an bought at reduced price 57% of "Rutas de LIma" (HighwayToll systems) , Can this harm Brookfield credibility, and integrity and the stock. Sell/Hold?
thanks
https://www.thestar.com/business/brookfield-corp-scrutinized-for-stake-in-peru-toll-road-project-plagued-by-allegations-of-corrupt/article_9629182a-a364-11ef-8826-2b980726b1dd.html
There are many proofs that indicates Brookfield knew about Odebrecht corruption in Peru and went ahead an bought at reduced price 57% of "Rutas de LIma" (HighwayToll systems) , Can this harm Brookfield credibility, and integrity and the stock. Sell/Hold?
thanks
5i Research Answer:
The 'optics' don't look great but at the end of the day the project is a relatively small piece of Brookfield's $137B market cap, and the stock continues to hit new highs regardless. Investors, for better or worse, seem to have accepted that these things will happen when one does business on a massive scale globally. We certainly would not see this as a reason to sell the stock and would still consider it a BUY.