This excerpt taken from the PBR 6-K filed Apr 3, 2006.
Petroquisa and Braskem announces decision
(Rio de Janeiro, March 31, 2006) PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA], a Brazilian international energy company, in light of the expiration today of Petroquisas option to increase its share of the voting capital of Braskem to 30%, through the issue of new ordinary shares, that would be paid for by means of the transfer to Braskem of its participation in certain petrochemical companies indicated by the Press Release of 29 of September of 2005, informs its shareholders and the market of the following:
As per appraisals carried out by the concerned parties, Petroquisa decided not to exercise the Option, as it was impossible to reach a consensus regarding the terms and conditions that would benefit all Braskem shareholders.
The current shareholding structure of Braskem will not suffer any change, as the shareholding position currently held by Petroquisa of 10.02% in the voting capital and 8.45% in the total share capital of Braskem will be maintained, as well as the provisions of the Memorandum of Understanding for a Shareholders Agreement of Copene Petroquímica do Nordeste S.A. (the former name of Braskem), celebrated between Odebrecht and Petroquisa.