This excerpt taken from the PBR 6-K filed May 15, 2008.
2. NUMBER, TYPE, CLASS, RIGHTS, POLITICAL AND EQUITY ADVANTAGES OF BRASKEMS SHARES TO BE ASCRIBED TO PETROQUISA.
2.1. Shares to be Ascribed. On the basis of the criteria set forth in item 2.2 below, in the Incorporation of Shares, 0.067419126039 (zero decimal point zero six and fraction) common share and 0.062016407480 ( zero decimal point zero six and fraction) preferred class A share, the issuance of Braskem, shall be attributed to 1 (one) common share, the issuance of Grust (Exchange Ratio), being ascribed to Petroquisa, the sole shareholder of Grust, a total of 46,903,320 (forty-six million, nine hundred and three thousand, three hundred and twenty) new common shares and 43,144,662 [forty-three million, one hundred and forty-four thousand, six hundred and sixty-two] new preferred class A shares issued by Braskem in exchange for 695,697,538 (six hundred and ninety-five million, six hundred and ninety-seven thousand, five hundred and thirty-eight) common shares held by Petroquisa in Grust. Thus, following the Incorporation of Shares, fractions of shares issued by Braskem shall not exist.
2.2. Criteria Used to Determine the Exchange Ratio. The Exchange Ratio was established on the basis of the discounted cash flow criterion in the case of Braskem, IPQ, PPSA and Copesul, and transaction multiples of comparable companies in the case of IQ, in line with the economic-financial appraisals previously prepared by Banco Itaú BBA S.A., a financial institution with its registered offices in the city and state of São Paulo at Av. Brigadeiro Faria Lima, 3,400, 4th floor, enrolled in the corporate taxpayers register (CNPJ/MF) under number 17.298.092/0001 -30 (Itaú BBA). The exchange ratio is considered to be fair and equitable for the shareholders, being based on the economic criterion, which best reflects the effective value of the assets as is shown in the appraisals undertaken by Itaú BBA.
2.3. Rights and Political and Equity Advantages of the Shares. The common shares and preferred class A shares issued by Braskem with respect to the Incorporation of Shares shall be entitled to dividends under equal conditions to the respective shares of the same type and class already in existence. These shares shall have the rights pursuant to Braskems Bylaws in force as of this date, including the right to sell jointly and under the same conditions as the controlling shareholder in the event of a change in Braskems controlling ownership (100% tag along rights) and other shareholder advantages of companies classified under BOVESPAs (the São Paulo Stock Exchange) Level 1 Corporate Governance Regulatory Practices.
2.4. Participation in Profits for Fiscal Year 2008. The shares to be issued by Braskem in the light of the Incorporation of Shares shall have full rights to all dividends and interest on shareholders capital which may be declared following their issuance.