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UPDATE 1-JBS plans to list U.S. unit as Brazil presses for CEO's ouster

(Adds details of results, BNDES' stance on lawsuit, details of results, context)

SAO PAULO, Aug 15 (Reuters) - JBS SA said it will proceed with plans to list a U.S.-based unit when market conditions allow, as the world's biggest meatpacker wrestles with a shareholder revolt over the role of the controlling Batista family in a massive graft scandal.

In a Tuesday conference call to discuss second-quarter results, Chief Executive Officer Wesley Batista said JBS Foods International Inc could be listed by the end of next year, once parent JBS finalizes 6 billion reais ($1.9 billion) in asset sales to cut debt and restore investor confidence.

"It is not a matter of if but when," he said of plans for the U.S. IPO.

JBS Foods includes Swift and Pilgrim's, among other units.

His remarks came after state-owned Brazilian development bank BNDES, whose investment arm is JBS' No. 2 shareholder, said earlier in the day that it would endorse a civil lawsuit against management and the billionaire Batista family. The lawsuit alleges that their role in a corruption scheme led to heavy shareholder losses.

BNDES Participações SA will seek the ouster of JBS CEO Wesley Batista at a Sept. 1 shareholder meeting. The lawsuit also targets his brother Joesley Batista, who is also a board member, former executives and J&F Investimentos SA, which oversees the family's 42 percent stake in JBS.

In May, the Batista brothers signed a plea deal with Brazilian prosecutors after admitting to bribing 1,900 politicians over the course of a decade.

Since then the brothers have personally negotiated short-term refinancing of 21 billion reais in JBS debt and planned the sale of several JBS assets following the scandal.

Shares gained 0.6 percent in midday trading, as the succession of probes and scandals had a smaller-than-expected impact on second-quarter operational trends.

EARNINGS

Late on Monday, JBS reported quarterly net income that was about half the amount forecast by analysts as net financial expenses jumped to their highest in five quarters on currency variations and adjustments in the fair value of derivatives.

Still, earnings before interest, tax, depreciation and amortization (EBITDA) rose 30 percent from a year earlier to 3.7 billion reais, beating an average estimate of 3.4 billion reais.

CEO Batista said on Monday that the U.S. beef business is booming and the outlook has improved for the Seara food processing division, where he said margins will return to historical double-digit levels.

JBS is on track to reduce debt faster than investors anticipated, he said. Net debt could drop to 3.5 times annual EBITDA by December, Batista said, noting that those debt levels had not been expected until the end of 2018.

The company is also in advanced talks to sell Moy Park Ltd in Europe and U.S. unit JBS Five Rivers Cattle Feeding LLC, following the sales of Argentine assets and a stake in dairy producer Vigor Alimentos SA, Batista said.

JBS has also hired lawyers to deal with a potential U.S. criminal investigation of its corporate practices, he said, adding that "none of our U.S. subsidiaries or executives committed any wrongdoing."

After confessing to bribing scores of politicians to win business in the country, JBS management revamped internal processes and hired a former U.S. Department of Agriculture official to improve its image and credibility.

($1 = 3.198 reais) (Reporting by Ana Mano; Additional reporting by Alberto Alerigi Jr in São Paulo; Editing by Guillermo Parra-Bernal and Phil Berlowitz)