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Brazil's Estácio removes CEO Thompson from merger discussion group

SAO PAULO, March 17 Brazil's Estácio Participações SA said on Friday that it had removed Chief Executive Officer Pedro Thompson from a group discussing terms of a sale to larger rival Kroton Educacional SA but denied a newspaper report suggesting he was working against the deal.

Estácio made the statements in a securities filing. Newspaper Valor Econômico, citing unnamed people familiar with the matter, said Estácio's board opened a formal probe into an anonymous tip suggesting that Thompson was working against the deal.

($1 = 3.1075 reais) (Reporting by Ana Mano; Editing by Lisa Von Ahn)

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