This excerpt taken from the PBR 6-K filed Aug 19, 2005.
c) Partial spin off not proportional of Downstream
The Board of Directors approved the conditions of the partial spin-off not proportional of Downstream Participações Ltda. (Downstream) and the takeover of the spun-off portion by PETROBRAS.
Said operation of spin-off followed by takeover will not result in any change in Petrobras capital and will not have any significant effects for Company shareholders, of which the sole objective is to reorganize assets so that participation in 5283, asset related to the international area be segregated from the other assets of Downstream related to national activities in the supply area.
Except for the spun-off portion, which will be transferred to Petrobras, all the other assets and liabilities, rights and obligations of Downstream will be maintained by it.
PETROBRAS will assume only the rights and liabilities related to the spun-off portion, together with Downstream, for all the purposes and effects of sole paragraph of article 233 of Law No. 6.404/76.
d) Acquisition of CEG-RIO
PETROBRAS, through its subsidiary Petrobras Gás S/A - GASPETRO, concluded on July 11, 2005 the acquisition of 12,41% of the shares (common and preferred)of Distribuidora de Gás Natural Canalizado CEG-RIO, for R$ 39.334 thousand (US$ 16.540 thousand). With this acquisition, the shareholdings of GASPETRO in said company are increased to 37,41%, characterizing as from that date shared control as prescribed by CVM Instruction No. 247/96.
e) Approval of Shelf Registration by Securities and Exchange Commission SEC
On July 28, Securities and Exchange Commission SEC approved the Shelf Registration that enabled PETROBRAS and its subsidiary Petrobras Internacional Finance e Company to issue fixed or variable marketable securities worth as high as US$ 6,5 billion over the next 24 months.
The volume of potential issues is in line with PETROBRAS investments expected for the coming years, and with the financial leverage limits set forth in the Company's strategic planning.
Once all procedures and legal registration required by SEC are completed, PETROBRAS will be able to perform in the foreign market at its convenience.