Daniel Dantas, former Citigroup manager of a $728 million fund in Brazil, was charged with racketeering and breach of confidentiality in connection with a Brazilian probe into whether he hired security firm Kroll to spy on the government and business rivals. The charges, all of which Dantas has denied to the police, are preliminary and must be confirmed by a Brazilian court.
Category: Paywall
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Petrobras Studies Pakistani Projects
Petrobras, Brazil’s state-controlled oil company, is studying offshore oil and natural gas exploration in Pakistan after company officials visited the country last week. The visit by Petrobras officials comes after Pakistan’s President Pervez Musharraf visited Brazilian President Luiz Inácio Lula da Silva in November.
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EFE Places Bonds
Chile’s state rail company EFE has placed roughly $100 million-worth of local currency bonds. The inflation-indexed 30-year bonds, which are guaranteed by the Chilean government, will finance part of the company’s $1 billion 2003-2005 investment plan. Fitch Ratings and Humphreys rated the bonds AAA. Demand for the bonds was 2.7 times the initial offer, with the final interest rate at 3.79%.
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Rossano Confirmed at Banco do Brasil
The government of President Luiz Inácio Lula da Silva confirmed Rossano Maranhão Pinto as president of state-owned Banco do Brasil, Latin America ‘s biggest bank. Maranhão Pinto took over temporarily as president last September after his predecessor Cássio Casseb quit in anger at accusations of financial irregularities made against against him. Analysts had feared the government might replace Casseb with a political appointee. However, Maranhão Pinto is a highly repsected career Banco do Brasil executive, and was formerly vice president of the bank’s international and wholesale division.
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Esso Lowers Prices
US fuel distributor Esso lowered gasoline prices in Argentina on Monday by 2.1-2.9% after the Argentine government threatened to exempt the company from a resolution allowing companies to import diesel tax-free. Anglo-Dutch oil company Shell and Esso raised fuel prices in early March, leading President Nestor Kirchner to call for a boycott of their products. Shell’s sales have fallen dramatically since the boycott began and the company announced last week that is was lowering gas prices.
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Samarco Profits Double
Net profits at Samarco, the world’s second-largest exporter of iron ore pellets, surged 103% to $207 million in 2004, more than twice its 2003 net of $102 million last year. Gross sales increased 28% to $641 million up from $500 million in 2003. Production volume rose 4% to 25.2 million tons. Samarco is planning $750 million in investments. The Belo Horizonte-based company is a 50-50 joint venture between Australia’s BHP Billiton and Companhia Vale do Rio Doce.
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Fox Wins Energy Ruling
In a victory for Mexican President Vicente Fox, Mexico’s Supreme Court ruled the president had the right to allow private companies to generate electricity in the country. The lower house of Congress had asserted that only the government had the right to generate electricity and was seeking to annul all concessions awarded to private companies. The ruling comes as Fox steps up calls for Congress to open the economy to private investment in energy.
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Scotiabank Sues Argentina
Canada’s Bank of Nova Scotia is seeking more than $600 million in damages from the Argentine government, blaming actions by authorities for the losses it suffered when it shut down its Argentine banking unit, Quilmes, during the economic crisis in 2002. When the Argentine government revoked Quilmes’ license the bank had 91 branches and 1,700 employees.
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Gol’s Revenue Rises
Brazil’s no-frills airline Gol Linhas Aereas Inteligentes reported first quarter revenue of $225 million, a 36% increase from the same period of 2004. The company’s revenue per seat kilometer rose 6.9% to $8.24. Gol, which started operations in early 2001, became a publicly traded company last year.
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TAM to Sell Shares
TAM, Brazil’s second-biggest airline, said it plans to sell shares in an offering to Brazilian and US investors. The Sao Paulo-based airline and its controlling shareholders, including the Amaro family, filed a petition to sell preferred shares as part of the offering. The company has not yet disclosed details of the offering and the dates of the sale.