SAO PAULO, Jan 16 (Reuters) - U.S. hedge fund Farallon Capital Management LLC is close to reaching a deal to buy a controlling stake in a toll road operator owned by Brazilian conglomerate Odebrecht SA for about 1.5 billion reais ($403.58 million), a Brazilian newspaper reported on Wednesday.
The negotiations were first reported in August.
The deal could be finalized as early as this month, the Valor Economico newspaper reported.
Odebrecht, which has been at the center of major corruption scandals in Brazil and throughout the region, had first put the toll operator up as collateral for a loan.
The deal would entail converting the debt to equity, and an undisclosed mix of cash and an additional variable amount that depends on the performance of the road, which is located in the state of Sao Paulo.
Brazil's largest toll operator, CCR, was also initially interested in buying the operation, Valor reported.
$1 = 3.7167 reais Reporting by Marcelo Rochabrun; editing by Jason Neely