BRAZIL.
BIG LOANS TO BIG BUSINESS.
Brazil’s state run oil company Petrobras, took out a US$860 million loan from the state bank last week.The government says that this type of loan is not unusual.
The companies president Dilma Rousseff, said "we took out the loan as we had immediate need for liquidity, to suggest we have financial problems, is quite ridiculous".
Meanwhile Brazilian meat packer Sadia SA, is reportedly seeking a partner to take 20% equity in the company.
After sustaining losses of us$400 million on currency exchanges, the company is reportedly urgently seeking a partner, according to local newspaper "The Estado de San Paulo", on Saturday.
There have been over a dozen class actions filed, by droves of lawyers in the United States, on behalf of investors in the meat company.
Whether these actions reach fruition or not, they have already cast a long black shadow of doubt over the companies operating capacity, and the companies viability.
The CEO stepped down and the financial director was dismissed, over the losses.
Perdigao the Brazilian Juggernaut, had a board meeting on Thursday, to discuss the future of its involvement in agriculture.
The rural sector is operated through Perdigao Agroindustrial, Mato Grosso Ltd, Batavia Sa, Industria de Alimentos which are wholly owned subsidiaries.
The meeting was to discuss the legal rights of foreign investors in the company.
