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Strategies & Market Trends : Telebras (TBH) & Brazil -- Ignore unavailable to you. Want to Upgrade?

To: Art Baeckel who wrote (21177)	7/28/2000 7:56:36 AM
From: Art Baeckel	Read Replies (2) \| Respond to of 22640

Brazil's Petrobras extends share sale to Aug. 7 Reuters Company News - July 27, 2000 12:04 Copyright 2000 Reuters Limited. All rights reserved. Republication or redistribution of Reuters content is expressly prohibited without the prior written consent of Reuters. Reuters shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. Jump to first matched term RIO DE JANEIRO, July 27 (Reuters) - Brazilian state oil giant Petrobras will extend a share offer worth over 8 billion reais ($4.4 billion) by five days to Aug. 7 in hopes of fuelling last minute demand, officials said on Thursday. "There was pressure from trade unions and banks to extend the date, so the government agreed," a spokesman at Brazil's National Development Bank (BNDES), which is coordinating the sale, told Reuters. Petrobras hopes to sell 28.5 percent of voting stock - equivalent to 16.6 percent of total capital - to individual and institutional investors in Brazil and the United States in the country's biggest public offering. The company had initially said it would accept cash offers until Aug. 2. Workers who want to invest their government-managed salary guarantee funds (FGTS) will also have until Aug. 7, instead of the initial July 31 deadline for such investments. Petrobras will announce the price on Aug. 8, after compiling offers. The company has set a ceiling price of 58 reais for FGTS funds. The shares will be delivered on Aug. 17, the BNDES said. It is the first time that workers will be able to use their FGTS funds to buy stocks. All workers make mandatory contributions to the FGTS, but until now they have only been able to draw on them when they retire, are fired or buy a house. Union leaders asked Petrobras to extend the sale to give workers more time to consider the unprecedented option, the BNDES said. Banks also requested an extension because they expect demand to snowball at the end of the offer. Analysts have said domestic interest could have been dampened after Petrobras leaked a million gallons of oil (4 million liters) into a southern river last week in the country's biggest oil spill in 25 years. The government plans to maintain 32.4 percent of the total capital in Petrobras, or 55.6 percent of voting shares. As part of the deal, Petrobras is launching level III American Depositary Receipts (ADR). ($1=1.8 reais)