By Jeffrey T. Lewis


SÃO PAULO-- Petróleo Brasileiro's preferred shares fell 2.6% after a report that the state-controlled oil company is considering exercising its right to buy a stake in the chemical company Braskem, which is owned by Novonor.

Shares of company, known as Petrobras, on Monday were down 2.6% to 25.58 reais, the equivalent of $5.21. The stock was up 7.1% from the end of last year through Friday's close. Braskem shares were down 6.8% at BRL22.67. Brazil's benchmark Ibovespa stocks index was up 0.3% in midafternoon trading.

Brazil's Folha de S. Paulo news organization reported that the oil company, which has the right of first refusal if Novonor decides to sell its approximately 38% stake in Braskem, is considering exercising that right. Petrobras owns about 36% of Braskem.

Novonor has said it received an offer to buy Braskem, for BRL47 per share, while Petrobras said Friday that it isn't holding talks with any potential buyers, nor has it made any decisions about selling or increasing its stake in Braskem.

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


(END) Dow Jones Newswires

05-15-23 1437ET