OGX Leads Eike Batista Group Rout After Veja Reports Asset SaleJuan Pablo Spinetto
OGX Petroleo & Gas Participacoes SA fell the most in almost a year, leading declines by companies controlled by Eike Batista, after Veja magazine reported the Brazilian billionaire is selling more assets to raise funds.
Oil producer OGX slumped 15 percent to a record 82 centavos in Sao Paulo today, while miner MMX Mineracao & Metalicos SA slid 14 percent and port developer LLX Logistica SA lost 8.4 percent. The three Batista units were the worst performers in Brazil’s Ibovespa index, which fell 0.5 percent.
Batista’s holding company EBX Group Co. is selling assets, reducing staff and trimming the scope of projects as his commodities and logistics startups accumulate losses. OGX tumbled 22 percent last week after the billionaire disclosed he sold shares of its flagship oil producer for the first time.
His entertainment joint venture IMX is for sale, Veja magazine columnist Lauro Jardim reported June 15, without citing anyone. IMX’s press office declined to comment on the report. EBX, the holding for most of Batista’s assets, didn’t immediately respond to an e-mail seeking comment on the share-price decline today.