Translated article OK, How exactly does this translate into the share price and value for this company? Vectorvest has it as a value of $17+ trades at a third that value. The Petrobras link is going to hurt them more I think....
The details
Braskem, the largest petrochemical company in Latin America, announced that it finalized an agreement with Petroleo Brasileiro for the revision of naphtha supply contract. ... The new deal extends the contract between the two firms until August 31, 2015. Carlos Fadigas, the CEO of Braskem, said in February that its various plastics and chemicals plants are on the verge of shutdown in absence of any contract.
Controlling interest
Petroleo Brasileiro has 36% stake in Braskem SA (ADR)(NYSE:BAK) but Odebrecht Group has a controlling interest. It is one of the leading engineering and construction firms in Brazil. The oil producer’s relationship with many of the suppliers has been hampered in recent months due to the ongoing corruption scandal, nearing to potential loss of billions of dollars.
Investigation
The federal prosecutors initiated an official investigation into the Petrobras scandal, which pertains to charges of corruption, bribery, racketeering and organized crime. As per the prosecutors, the executives plotted the corruption plan with directors of some of the largest Brazilian construction firms. They allegedly inflated contracts prices and bribed politicians to execute the scheme.
The future ahead
Petrobras has strongly denied the allegations, but the scandal has stained the firm’s fortunes, as its debt holders and investors face significant losses. Odebrecht, the majority owner of Braskem SA (ADR)(NYSE:BAK), was one of the construction companies said to be connected in the corruption scandal. Due to the ongoing scandal, Petroleo Brasileiro stopped entering into new contracts with implicated contractors, which made it tough for Braskem to extend the contract with the Brazilian oil company.