Petrobras slides after proposed changes to bylaws (NYSE:PBR) - Seeking Alpha

Petrobras slides after proposed changes to bylaws (NYSE:PBR) | Seeking Alpha

Petrobras slides after proposed changes to bylaws

Petróleo Brasileiro S.A. - Petrobras (PBR) By:

Carl Surran, SA News Editor
19 Comments Joa_Souza/iStock Unreleased via Getty Images

Petrobras (NYSE: PBR) -3% in Monday's trading on concerns that proposed changes to its bylaws could make it easier for the government to interfere in the company's operations.

Petrobras said ( PBR) said its board approved several proposals, including a change to rules regarding appointments to top positions at the company; shareholders would have to approve any changes.

Investors are uncomfortable because of concerns the government could be more likely to interfere in the company's operations, Bruno Komura, an analyst at Ouro Preto Investimentos, told Dow Jones.

Petrobras' ( PBR) price policy is unlikely to be affected, but if approved the proposal could cause changes to investment policy that could hurt profits in the longer term, Komura told Dow Jones.

Petrobras' ( PBR) proposed new remuneration fund may give the company more flexibility to pay - or not pay - future extraordinary dividends, Citi analyst Gabriel Barra said.

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