By Jeffrey T. Lewis

 

SÃO PAULO--Brazilian chemical company Braskem's preferred shares rose 5.2% after a new report that shareholder Petróleo Brasileiro's management favors an offer by Apollo Global Management and Abu Dhabi National Oil Co., or ADNOC, to buy the chemical company.

Braskem shares reached 23.16 reais, the equivalent of $4.77, and were down 7.7% from the end of last year through Friday's close. Brazil's benchmark Ibovespa stocks index was little changed in early trading. Petrobras's preferred shares rose 1.1% to BRL34.26.

A columnist for Brazil's Globo news organization reported Sunday that Petrobras, which owns 36% of Braskem, told Brazilian President Luiz Inácio Lula da Silva that the state-controlled oil company prefers the bid by Apollo and ADNOC for Braskem because of that group's investment capacity and knowledge of the sector.

Petrobras said Monday morning it has made no decision on the future of its stake in Braskem. Novonor, the engineering and construction company formerly known as Odebrecht, is trying to sell its 38% stake in Braskem and Petrobras has the right of first refusal to buy the stake.

 

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

(END) Dow Jones Newswires

September 18, 2023 10:10 ET (14:10 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.
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