Consulting Firm May Be Hired For Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) Restructuring
The proposal by Aldemir Bendine, the new head of the state-owned Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR), that a consulting firm be hired to draw up plans for a ‘new Petrobras,’ may not have been welcomed by other board members. Bendine’s purely banking-domain experience appears to be working against him, as councilors appeared to oppose.
However, on Thursday, Bloomberg news reports that PBR has chosen three dominant players to divest the company.
A leading banker, Bendine was appointed in February to lead the petroleum company amidst charges of corruption. The petroleum company forms the backbone of Brazilian economy and the fast-paced reforms are crucial to the austerity reforms the newly elected President, Dilma Rousseff, wishes to implement.
Maria das Gracas Foster, who resigned as the Chief Executive of Petroleo Brasileiro Petrobras SA, was accused, along with five others, of inflating prices in contracts and diverting funds to politically-related Petrobas directors and other allies.
Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR), as of its Thursday’s announcement, has identified Citigroup Inc., Banco Bradesco SA, as well as Banco Santender Brasil SA, to divest $13.7 billion of its stakes in three units.
Petroleo Brasileiro Petrobras SA (ADR)’s derivatives unit, Petrobras Distribuidora SA, which is the largest distributor, as well as marketer, of biofuels in the region, will be divested via direct sales or via public offering.
Santander will advise on the divestments of natural gas unit Transportador, as well as the Transport unit Transpertro. It is likely that, with respect to the transport unit, the vessels may be sold and continue to be used by
Petroleo Brasileiro Petrobras SA (ADR) (NYSE:PBR) under lease.
However, these proposals are being criticized by board members with the most articulate of them, Silvio Sinedino, stating, ‘we are selling lunch to buy dinner.’ He accused that, even before the board could determine which parts of the company are to be retained and which are to be sold, the search for buyers has already commenced!
Latest posts by Lisa Ray (see all)
- Lawsuit Over Takeover Battle Settled By Pershing And Allergan, Inc. (NYSE:AGN) - April 10, 2015 05:31 AM PST
- Walgreens Boots Alliance Inc (NASDAQ:WBA) To Shut Down 200 Stores In US - April 10, 2015 05:26 AM PST
- Amazon.com, Inc (NASDAQ:AMZN) Suing Websites For Fake Reviews - April 10, 2015 05:24 AM PST