Banco de Brasilia Shares Slide After Deal for Banco Master Nixed

Banco de Brasilia SA stock slumped the most since April after Brazil’s central bank rejected its acquisition of the troubled lender Banco Master SA, leaving the target of the proposed acquisition with few options as it looks for fresh capital.

BRB, as Banco de Brasilia is known, said it would review the decision but still believed in the merits of the transaction. Banco Master, which isn’t publicly traded, said it would also look into it, adding that “the bank remains confident in its strategy and operations.”

The rejection sent BRB stock down as much as 17% in Sao Paulo, ...