Wednesday, February 4, 2015

Petrobras Update: George Soros' Cash Cow Shares Soar in Brazil on Rumors of CEO’s Firing


SAO PAULO – Stocks of Petrobras, Brazil’s scandal-ridden state oil company, soared Tuesday on the Sao Paulo exchange amid rumors that CEO Maria das Graças Foster will be soon replaced.

The company’s preferential shares were up 12.59 percent at 3:30 p.m., while Petrobras ordinary shares rose 11.79 percent, spurring a 2.67 percent rise in the benchmark Ibovespa index.

Media reports said Brazilian President Dilma Rousseff has begun seeking a replacement for Foster, who offered her resignation late last year as the corruption scandal in the country’s largest company grew worse.

Rousseff, however, opted to keep Foster at the helm.

The scandal erupted last March and has led so far to the detention of three former Petrobras directors along with executives of Brazil’s major companies.

Folha de Sao Paulo newspaper said on its Web site that Rousseff has now decided to dump Foster, influenced in part by Petrobras’ recently released third-quarter results.

While declining to offer any estimate of losses from embezzlement, the statement included 88.6 billion reais ($34.5 billion) in asset write-downs related to inflated contracts and invoices from projects during the period 2004-2012.

Despite the rumors, Rousseff’s press office said the president has not made a decision yet to remove Foster.


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