By Jeffrey T. Lewis
SÃO PAULO--Petróleo Brasileiro SA preferred shares fell 4.8% after the Brazilian government fired the state-controlled oil company's chief executive officer.
The shares fell to 31.00 reais, the equivalent of $6.42, and are up 27% from the end of last year through Monday's close. Brazil's benchmark Ibovepsa stocks index was down 1.6% at the same time.
Petrobras said late Monday evening that the country's Mining and Energy Ministry informed the company that it intends to replace CEO José Mauro Ferreira Coelho with Caio Mario Paes de Andrade, currently an economy ministry official with business degrees from U.S. universities and experience with internet startups.
Mr. Paes de Andrade will be the oil company's fourth CEO under Brazilian President Jair Bolsonaro, who fired the previous three men in the position after complaining about rising gasoline and diesel fuel prices.
Petrobras's independent pricing policy is increasingly under threat, with more price hikes unlikely to be tolerated amid Brazil's current situation of rapidly rising consumer prices, according to analysts at BTG Pactual.
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(END) Dow Jones Newswires