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20035-900 - Rio de Janeiro, RJ
Federative Republic of Brazil
Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes _______ No___X____
Lawsuit filed by minority shareholder is ruled favor of Petroquisa
In this suit, the Plaintiff alleges that Petrobras, as majority shareholder of Petroquisa, with more than 99% of the capital stock, should reimburse it for an alleged “loss” that occurred to Petroquisa's equity value following approval of the minimum sale price of Petroquisa's shares in the capital stock of the privatized companies in which Petroquisa had owner shares.
On January 14, 1997 , the court ruled that Petrobras was liable to Petroquisa for losses and damages equivalent to US$ 3.406 billion. In addition, Petrobras was ordered to pay the Plaintiff 5% of the amount by way of a premium, as well as legal fees for a further 20% (Article 246, Paragraph 2 of Law 6404/76).
Petrobras lodged an appeal against this ruling with the Supreme Court of the State of Rio de Janeiro, and a final ruling was made on February 11, 2003 , by the Third Civil Court Division, which, by a majority vote , deciding in favor of Petrobras' appeal and dismissing the claim for damages. However, one of the judges granted a partial remedy in favor of the Company's appeal , reducing the amount to US$ 2.370 billion.
Porto Seguro then impeded this judgment, and a final ruling was handed down on March 30, 2004 , by the Fourth Civil Division of the Supreme Court of Rio de Janeiro, which ruled unanimously in favor of the previous verdict, ordering Petrobras to reimburse Petroquisa for the amount of US$ 2.370 billion, plus a 5% premium and 20% in legal fees.
In light of this result, as soon as the decision is published, Petrobras will lodge an appeal with the Court of Appeals (STJ) and the Federal Supreme Court (STF), where it expects and believes that justice will be done and the decision reversed.
For the sake of argument it is noted that should the sentence be upheld, the amount in question would be due to Petroquisa, and since Petrobras holds more than 99% of Petroquisa's capital stock, the effective disbursement would be limited to 25% of the total value, and the maximum exposure to Petrobras would be US$ 592.5 million (the 5% premium + 20% in legal fees).
Petróleo Brasileiro S.A – PETROBRAS |
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PETRÓLEO BRASILEIRO
S.A--PETROBRAS | ||
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By: |
/S/ José Sergio Gabrielli de Azevedo
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José Sergio Gabrielli de Azevedo
Chief Financial
Officer and Investor Relations Director
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