Eike Batista’s OGX Petroleo & Gas SA (OGXP3) tumbled the most in a week after the Brazilian entrepreneur disputed a request from the oil explorer to exercise part of a $1 billion put option as it seeks cash to keep operating.
OGX plummeted 17 percent to 43 centavos at the close of trading in Sao Paulo, the most since Aug. 30. The oil company founded by Batista is down 90 percent this year, the biggest drop among more than 500 global oil companies worth at least $100 million, according to data compiled by Bloomberg.
Batista is disputing the terms of the option and plans to take the matter to an arbitration court if an agreement isn’t reached within 60 days, according to a letter from the entrepreneur to OGX that the company disclosed today in a regulatory filing. OGX posted its largest ever increase Sept. 6 after saying it would ask Batista for $100 million by exercising part of the option he pledged last year.
“I reserve the rights provided to me by the contract and law in the sense of questioning the circumstances, form, content, legitimacy and other legal aspects of the intended exercising of the option,” Batista said in the letter.