PBR Petroleo Brasileiro ADR

PETROBRAS

Suits Are Settled With Pimco, Others

Brazilian state oil company Petróleo Brasileiro SA has agreed to settle lawsuits from Pacific Investment Management Co. and three other investors who alleged they were harmed by a corruption scheme that funneled billions of dollars from the company.

Petrobras's board approved agreements with investment funds managed by Allianz SE unit Pimco, Dodge & Cox, Janus Capital Group and Al Shams Investments Ltd., the company said late Friday, marking the first time it has settled with investors who sued in the wake of the so-called Car Wash scandal. The company added that it expects to take a provision of $353 million against its third-quarter earnings to cover these and other deals that are being discussed.

Though Pimco, a unit of German insurer Allianz SE, is one of Petrobras' largest bondholders and Dodge & Cox is among its biggest private stockholders, the oil company has a lot of negotiating left to do. It is still defending itself against 23 individual lawsuits. In addition, it faces one class-action suit claiming tens of billions of dollars in damages on behalf of dozens of plaintiffs, including the New York City firefighters' pension fund.

Petrobras said it "will continue firmly defending itself in the remaining lawsuits under way and has the objective of eliminating the uncertainties, onus and costs associated with continuing these disputes."

--Paul Kiernan

--Paul Kiernan

GOLFSMITH INTERNATIONAL

Dick's Wins Auction For U.S. Stores

Dick's Sporting Goods Inc. was named the winner at a bankruptcy-run auction for Golfsmith International Holdings Inc.'s U.S. stores, people familiar with the matter said.

Dick's plans to keep open at least 30 stores, and liquidators Tiger Capital Group, Gordon Brothers Retail Partners and Hilco Merchant Resources will close the rest of the locations, the people added. Golfsmith has about 90 U.S. locations.

A Golfsmith representative didn't immediately respond to comment.

--Lillian Rizzo

--Lillian Rizzo

NINTENDO

Investors Are Cool To New Videogame

Nintendo Co.'s shares fell Friday after its new videogame platform failed to impress investors, but analysts say it is too soon to call the much-awaited console a disappointment.

The company Thursday unveiled a new console hand-held hybrid called Switch, a tablet-style unit that comes with separate controllers and a television-docking base.

Investors on Friday shrugged off the announcement, sending the company's share price down 6.5%.

Some investors blamed a lack of surprise in the announcement for the lukewarm market response, saying the company raised high expectations by withholding details about the hardware for more than a year.

Nintendo hinted it still has unannounced surprises to reveal. "We haven't shown everything," a Nintendo spokesman said.

--Takashi Mochizuki

(END) Dow Jones Newswires

October 24, 2016 02:48 ET (06:48 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.