BDORY Banco Do Brasil SA (PK)

The president of Brazil's Previ, Latin America's largest pension fund, announced his resignation Friday, the fund said in a statement on its website.

Ricardo Flores said he will leave June 1, after two years in the post. His exit is part of an ongoing political battle between executives at state-run Banco do Brasil SA (BDORY, BBAS3.BR) and Previ--the bank's pension fund.

The resignation comes after Brazilian President Dilma Rousseff considered removing Flores to end a dispute between Flores and top executives at Banco do Brasil SA, according to a person close to the institutions.

Rousseff may appoint Banco do Brasil Vice President Dan Conrado to replace Flores, said the person.

Flores and his supporters have been engaged in a battle with Aldemir Bendine, president of Banco do Brasil, over management changes at Brazilian mining company Vale SA (VALE, VALE5.BR). Previ is a major shareholder in the mining company, and Flores serves as chairman of Vale's board.

Bendine was in line to be named chief executive officer of Vale last year, a post he coveted, according to the person with knowledge of the conflict. But Flores blocked Bendine's appointment at Vale, forcing the board to choose Murilo Ferreira.

Flores will also leave his post as chairman of the board of Vale, a Vale board member said Friday. However, this should have no impact on the day-to-day running of the company, the board member said.

-By Rogerio Jelmayer and Diana Kinch, Dow Jones Newswires; 55-11-3544-7071; rogerio.jelmayer@dowjones.com

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