fatpitch2

Buy, Sell or Hold: iShares MSCI Brazil Upholds 'Order and Progress'

Mr. Marquez:

Thank you for the insightful article. I have heard rumor that the government might create new agreements for the oil finds that would be less favorable to PBR ... can you comment on this prospect?

Thanks!

Brazil Is the Best of BRIC

Carl:

Thank you for your insight!

Could you elaborate on your comments regarding "nationalization" of the deep water findings. If what you said were to happened what do you think the impact would be to PBR (and to lesser extent EWZ) shareholders?

"It is likely to create a new national oil company, backed by President Lula da Silva, under 100% government control, to take ownership of the new reserves and develop them in partnership with Petrobras and others. While Petrobras is controlled by the Brazilian state through a majority of its voting stock, most of its capital is in non-voting shares. Some 60% of total capital is held by minority and largely foreign shareholders who would miss the opportunity to benefit from exploiting the offshore discoveries."

Thanks