UPDATE 1-Mubadala mulls bid for Brazil's JBS, magazine says

(Adds details in Exame story, background, share performance)

SAO PAULO, June 16 (Reuters) - Shares of JBS SA jumped on Friday after Brazilian financial magazine Exame reported that Abu Dhabi sovereign wealth fund Mubadala Development Co PJSC is arranging partners to make a bid for control of the world's largest meatpacker.

According to Exame, which did not say how it obtained the information, Mubadala is forming a bidding consortium "in complete secret." Other bidders, including U.S. food producer Cargill Inc, might be interested in acquiring certain JBS assets, which may trigger a JBS breakup, Exame said.

Exame did not mention the name of other potential partners that Mubadala was sounding out for a JBS bid. The magazine report came a month after members of the billionaire Batista family, who control about 42 percent of JBS, signed a plea deal linked to a corruption scandal in their native Brazil.

Efforts to reach Mubadala's media office outside working hours were unsuccessful. The Batista family's investment holding company J&F Investimentos SA, São Paulo-based JBS and Cargill did not have an immediate comment.

Shares of JBS rose as much as 5.9 percent to 7.16 reais on the Exame story, after having shed about 0.8 percent in early trading. At 12:00 p.m. local time (1500 GMT), the stock was nearly flat.

Last month, the Batistas agreed to pay a record-setting 10.3 billion-real ($3.1 billion) fine related to corruption and bribery allegations. Shares of JBS have shed 29 percent since May 16, when brothers Joesley and Wesley Batista admitted in separate plea deals to bribing over 1,800 politicians in recent years.

Part of the testimonies in the plea deal implicated President Michel Temer, whom Joesley accused of working to obstruct a major corruption probe. Temer denies the accusations.

State loans helped fuel growth at J&F over the past decade, enabling it to assert control of JBS while expanding into fashion, dairy production, pulp processing and banking. JBS grew from a mid-sized slaughterhouse in Brazil's Midwest into one of the world's top-three food processing companies in over a decade through acquisitions partially funded by government-supplied money.

($1 = 3.2845 reais) (Reporting by Guillermo Parra-Bernal and Bruno Federowski; Additional reporting by Tatiana Bautzer in São Paulo; Editing by Phil Berlowitz)