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Post : Petrobras Weighs CEO Change as Brazilian President Turns Up Pressure
URL : https://middle-east.timesofnews.com/breaking-news/petrobras-weighs-ceo-change-as-brazilian-president-turns-up-pressure.html
Posted : February 24, 2021 at 12:29 am
Author : Times of News
Tags : Breaking News
Categories : Breaking News

SÃO PAULO—The financial future of Brazilian oil giant Petrobras hung in the balance Tuesday as its board moved forward with plans to approve President Jair Bolsonaro’s controversial appointment of an army general ( https://www.wsj.com/articles/petrobras-shares-drop-in-wake-of-bolsonaros-plan-to-name-new-ceo-11614025479?mod=article_inline ) to the company’s helm in an apparent bid to force the firm to subsidize fuel prices.

Mr. Bolsonaro’s nomination of Gen. Joaquim Silva e Luna, who served alongside him under Brazil’s 1964-85 dictatorship and has no experience in the oil industry, has roiled markets, wiping billions of dollars off Petrobras’s market value ( https://www.wsj.com/articles/conflict-at-petrobras-hits-bond-prices-11614027306?mod=article_inline ) and raising fears about government meddling in the economy.

Petrobras said late Tuesday that its 11-member board agreed to hold an extraordinary shareholder meeting to assess the president’s nomination, without setting a date. While the intention of the meeting is to replace the current chief executive, Petrobras will first have to determine if Mr. Bolsonaro’s nominee meets the criteria for the top job set in the company’s bylaws, according to a person familiar with the situation.

Analysts said Petrobras’s announcement, which also raised the possibility of the substitution of several board members, suggested the president could come out victorious in his efforts to shake up the company’s management.

The market closed before Petrobras’s announcement, leaving investors bracing for further swings in the company’s share price on Wednesday. Petrobras’s preferred shares climbed 11% on Tuesday, recovering some of the ground lost the previous day, when they plunged roughly 20%, the second-biggest daily loss in market value since the early 1990s, according to Economatica, a São Paulo-based analysis firm. Brazil’s benchmark Bovespa stocks index rose 2.3%.

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