epa01843749 Brazilian President Luiz Inacio Lula da Silva participates in the presentation of the program of control for the exploration and distribution of the oilfield of 'pre-sal' at Centro de Convenciones Ulisses Guimaraes in Brazilia, Brazil, 31 August 2009. Brazilian government proposed that state-run company Petrobras operate alone or in society with other companies all oilfields of 'Pre-sal', a region that could turn Brazil into a world“s new oil power. EPA/FERNANDO BIZERRA JR
Lula may lose Petrobras vote
Brazil's ruling party may lose a key Congress vote on a capitalisation plan for state-run Petrobras, a pro-government legislator said, implying the state may not be able to boost its control over the company as much as expected.
Under the plan proposed last year by President Luiz Inacio Lula da Silva, the government will provide largely unexplored offshore acreage to Petrobras in exchange for the new shares in the company.
The government had included an amendment to that bill that would block existing Petrobras minority shareholders from tapping their severance funds to buy new shares at the same time as the state in the capitalization plan.
That amendment would help the government increase its stake because many minority shareholders would be blocked from participating in the new issue.
Candido Vaccarezza, leader of Lula's Workers' Party in the lower house of Congress, acknowledged yesterday the government is likely to lose that vote.
"I'm going to work to win the vote, but the chances are better that we'll lose," he said in a telephone interview with Reuters.
Analysts say uncertainty over the capitalisation plan and concerns about growing government intervention in the company have weighed on Petrobras' shares in recent weeks.
Preferred shares of Petrobras , the most widely traded stock at Sao Paulo's Bovespa stock exchange, gained 35% in the past 12 months, less than half the 73% gain in the Bovespa index over the same period.
The plan is part of a broader package of measures currently being discussed in Congress that are meant to boost state control over the industry and ensure the state gets greater revenues from massive subsalt oil reserves.
Shares of Petrobras rose for a third day on Monday, gaining 0.9% to 34.93 reais, the highest since 20 January.