This excerpt taken from the PBR 6-K filed Apr 26, 2007.
CADE reconsiders the Writ of Prevention it imposed on the Ipiranga Group purchase
(Rio de Janeiro, April 25, 2007). PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA, BCBA: APBR/APBRA], a Brazilian international energy company, announces that the Administrative Council for Economic Defense CADE (the Brazilian anti-trust authority) has accepted the companys arguments and changed a few of the items it imposed in the Writ of Prevention it set forth last April 17th regarding the purchase of the Ipiranga Group assets.
The CADEs plenary sitting was unanimous in acknowledging that Petrobras will continue holding a minority participation in Central Petroquímica do Sul (Copesul) after the acquisition is wrapped-up and revoked the impediment it had imposed on Petrobras participation in discussions or in strategic and trade policy decisions involving Copesul. Instead of the prohibition, the rules the Shareholder Agreement Petrobras and Braskem signed pursuant to the acquisition will go into effect.
The CADE councilors took Petrobras clarifications regarding the fact the company held minority participation in Copesul even before the Ipiranga Group assets were purchased into account. In its arguments, Petrobras showed that purchasing control over the Group does not give it relevant influence over Copesul form the competition viewpoint, especially considering the fact Petrobras will remain a minority shareholder in the petrochemical plant and that it will continue having a minority presence in the units Board of Directors.
So far as the fuel distribution market is concerned, the CADE clarified that the terms of the Injunction do not prevent Petrobras and Ultrapar the companies that purchased Ipiranga Groups distribution business from discussing a
corporate governance model that will preserve competition. The CADE gave Petrobras and Ultrapar
ten days to present their proposal and authorized the parts to hold meetings for this purpose.
Contacts: PETRÓLEO BRASILEIRO S. A. PETROBRAS
Investor Relations Department I Raul Adalberto de Campos - Gerente Executivo I E-mail: email@example.com
Av. República do Chile, 65 22nd floor - 20031-912 - Rio de Janeiro, RJ I Tel.: 55 (21) 3224-1510 / 9947
This document may contain forecasts that merely reflect the expectations of the Companys management. Such terms as anticipate, believe, expect, forecast, intend, plan, project, seek, should, along with similar or analogous expressions, are used to identify such forecasts. These predictions evidently involve risks and uncertainties, whether foreseen or not by the Company. Therefore, the future results of operations may differ from current expectations, and readers must not base their expectations exclusively on the information presented herein.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: April 25, 2007
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