Petrobras Shares Fall 4.2% After Proposed Changes to Bylaws

By Jeffrey T. Lewis

SÃO PAULO--Petróleo Brasileiro's preferred shares fell 4.2% after the state-controlled oil company known as Petrobras proposed changes to its bylaws.

Shares reached 36.26 reais, the equivalent of $7.24, and were up 54% from the end of last year through Friday's close. Brazil's benchmark Ibovespa stocks index was down 0.3% in mid-morning trading.

Petrobras said Monday that its board approved a proposal to change its rules regarding appointments to top positions at the company, among other alterations to the statutes. The company's shareholders will have to approve any changes.

Investors are uncomfortable with the proposal because of concerns it might make it easier for the government to interfere in the company's operations, said Bruno Komura, an analyst at Ouro Preto Investimentos. The company's price policy is unlikely to be affected, but if approved the proposal could result in changes to investment policy that could have an impact on profit in the longer term, he said.

Write to Jeffrey T. Lewis at jeffrey.lewis@wsj.com

(END) Dow Jones Newswires

October 23, 2023 10:40 ET (14:40 GMT)

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