This excerpt taken from the PBR 6-K filed Mar 5, 2008.
(Rio de Janeiro, March 3, 2008). PETRÓLEO BRASILEIRO S/A - PETROBRAS, [Bovespa: PETR3/PETR4, NYSE: PBR/PBRA, Latibex: XPBR/XPBRA, BCBA: APBR/APBRA], a Brazilian energy company with international operations, announces to its shareholders and investors in general that its Board of Directors, in a meeting held on this date, approved the sending of the Stock Split Proposal of shares issued by Petrobras, to be resolved by the Extraordinary General Meeting (EGM), to be held on March 24, 2008. The effective date for the split that will be addressed in the referred EGM will be soon informed to the market.
Should said proposal be approved by the EGM, each current share both common and preferred shall be represented by two shares after the stock split. As a result, PETROBRASs capital stock will comprise eight billion, seven hundred seventy four million, seventy six thousand, seven hundred forty (8,774,076,740) non-par value shares, of which five billion, seventy three million, three hundred forty seven thousand, three hundred forty four (5,073,347,344) are common and three billion, seven hundred million, seven hundred twenty nine thousand, three hundred ninety six (3,700,729,396) are preferred shares. Therefore, the shareholders will receive one (1) new share for each share held of the same class.
For the investors holding American Depository Receipts (ADRs) after the approval of the stock split the exchange ratio of two shares for each ADR of Petrobras traded on the New York Stock Exchange (NYSE) will be maintained.
No change in the value of the capital stock is being proposed with this operation.
The purpose of the stock split is to facilitate the purchase of Petrobrass shares by small investors and, as a result, increase the shareholders basis. This also shows the trust of the Company in its future results.
Almir Guilherme Barbassa
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: March 05, 2008
This press release may contain forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates offuture economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.