OGX demands fresh capital from Batista, shares surge

|By:, SA News Editor

Shares of OGX Petroleum (OGXPY.PK +26%) surge after the struggling company demands a $1B cash infusion from controlling shareholder Eike Batista, exercising an option provided earlier by Batista requiring $100M immediately and the remainder to be paid in as needed.

The move caught the Brazilian market by surprise, as several analysts believed the option wouldn't be exercised since it comes at a very high cost for Batista; he is committed to paying 6.3 reais/share, far above OGX's current market price.