By Jeffrey T. Lewis
SÃO PAULO--Braskem SA preferred shares fell 5.1% to 49.49 reais ($8.98), after parent Petroleo Brasileiro SA, or Petrobras, said it plans to sell almost all of its preferred shares in the Brazilian petrochemical company.
Braskem's share price has almost doubled since a year ago, but is down about 14% so far this year. Petrobras's preferred shares were up 0.4% to 31.58 reais in late morning trading.
Petrobras said Monday that it has requested authorization to register the secondary sale of preferred shares in Braskem. Braskem's other parent company, Novonor, will also sell its preferred shares in the chemical company, for a total sale of almost 155 million shares, according to the preliminary prospectus.
Petrobras currently owns 22% of Braskem's preferred stock, and would be left with 0.02% of those shares if all on offer are sold, according to the prospectus. Novonor, the construction company formerly known as Odebrecht SA, currently owns 23% of the preferred shares, and that would drop to zero if all shares are sold.
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(END) Dow Jones Newswires