CVM opens process to investigate news about Petrobras

The Securities and Exchange Commission (CVM) initiated this Thursday (4) an administrative process to investigate “news, relevant facts and communications” about Petrobras. The regulatory body’s initiative comes amid speculation about the payment of extraordinary dividends and a possible change in command of the state-owned company.

According to the protocol in the CVM system, the investigation was opened by the Company Monitoring Management 1 (GEA-1). The institution did not provide details about which information is the target of the process. Supervision generally occurs when news and announcements cause fluctuations in the market value of companies.

This Wednesday (3), the Minister of Finance, Fernando Haddad, stated that the government is awaiting information from Petrobras regarding the investment plan to define what position it will defend on the distribution of extraordinary dividends. Last month, the company decided not to distribute extraordinary dividends of R$43.9 billion to shareholders. The initiative caused the company to lose R$55.3 billion in market value on March 8th.

Earlier, this Thursday, the company informed the market that there had been no formal decision on the payment of extraordinary dividends. The statement was made after news reports indicated that Haddad and the ministers of Mines and Energy, Alexandre Silveira, and the Civil House, Rui Costa, had reached an understanding on the payment of extra dividends.

Furthermore, Jean Paul Prates’ continued presidency of the state-owned company was also questioned. At the moment, the most popular name to replace him is Aloizio Mercadante, current president of the National Bank for Economic and Social Development (BNDES).

The impact of speculation generated strong volatility in the company’s shares during the Ibovespa (B3) trading session. As a result, preferred shares ended the day down 1.41%, at R$37.88, while ordinary shares fell 0.46%, to R$39.12. Before that, the company’s shares rose more than 2%.