Large losses and mounting criticism of his business practices led him to hand over the project to Brazilian investors in 1981.

C.S.N. was finally sold to a group of Brazilian investors led by Mr. Steinbruch, an entrepreneur who had made his name in the textile business.

Aerovías Nacionales de Colombia, better known as Avianca, said it had selected a Brazilian investor, German Efromovich, to run the carrier.

This is not the first time international investors have differed sharply from Brazilian investors on their outlook for Brazil.

The Brazil Fund fell 15 percent after a default by a prominent Brazilian investor forced the nation's markets to close on June 9 for two days.

Last year, a Brazilian investor started a domestic airline, a first for this California-sized country.

Moving Into Gold In recent weeks, Brazilian investors have also moved rapidly out of cruzados into dollars and gold.

Its ownership structure is sprayed with predominant majority of Brazilian investors.

"It's the fear of Brazilian investors who are running to buy dollars."

The Brazilian former investors accuse MatlinPatterson of mismanagement with the intention of leading Varig Log to bankruptcy.