Threat to Extra Payout Sparks $6.4 Billion Rout at Petrobras
- Minority shareholder board members balk at dividend proposal
- Shares slump as investors see risks to extraordinary payout
The Petrobras Sao Caetano refinery in Sao Paulo, Brazil.
Photographer: Victor Moriyama/BloombergThis article is for subscribers only.
Investors in Brazilian state-controlled oil producer Petroleo Brasileiro SA just got another reminder that an industry-leading dividend bonanza is fading.
The Rio de Janeiro-based company, known as Petrobras, said on Monday that it proposed changes that could reduce how much it pays in dividends, and is reviewing how it appoints senior management and members of its fiscal council. Four of the eleven board members, who represent minority shareholders, pushed back and voted against the proposal, according to people familiar with the matter, who asked not to be named discussing events at the meeting.