EFTA00655787.pdf

From: Daniel Sabba •t: > To: "jeffrey E." <jeevacation@grnail.com> CC: Richard Kahn Paul Morris Stewart Oldfield , Ariane Dwyer , Vahe Stepanian , , Subject: FW: (BN) Soros Stake-Sale Report Sinks Petrobras as Brazil's Stocks [C] Date: Fri, 12 Jun 2015 15:37:55 +0000 Classification: Confidential Original Message From: Daniel Sabba (DEUTSCHE BANK SECURI) [mailto:sabbdan®bloomberg.net] Sent: Friday, June 12, 2015 11:38 AM Subject: (BN) Soros Stake-Sale Report Sinks Petrobras as Brazil's Stocks (BN) Soros Stake-Sale Report Sinks Petrobras as Brazil's Stocks Drop This has been prepared solely for informational purposes. It is not an offer, recommendation or solicitation to buy or sell, nor is it an official confirmation of terms. It is based on information generally available to the public from sources believed to be reliable. No representation is made that it is accurate or complete or that any returns indicated will be achieved. Changes to assumptions may have a material impact on any returns detailed. Past performance is not indicative of future returns. Price and availability are subject to change without notice. Additional information is available upon request. Soros Stake-Sale Report Sinks Petrobras as Brazil's Stocks Drop 2015-06-12 15:20:43.667 GMT By Denyse Godoy (Bloomberg) -- A report saying billionaire investor George Soros's firm sold its stake in Petroleo Brasileiro SA sank shares of the oil producer at the center of Brazil's largest corruption scandal. The Ibovespa led losses in the Americas. Petrobras fell for the first time this week after newspaper O Estado de S. Paulo said the firm also sold its options in the company, citing a document sent to the U.S. Securities and Exchange Commission. While the report shows the sale was done in the first quarter, traders say that should weigh negatively on the state-run company's shares. "Soros is an eagle of investments," Paulo Henrique Amantea, an analyst at brokerage H.H. Picchioni, said by telephone from Belo Horizonte, Brazil. "When he buys a stock, he gives it some support. When he sells everything, indicating that he does not see good prospects for the company, it's a very negative signal." Petrobras's Chief Executive Officer Aldemir Bendine is seeking to contain damage from a decade of alleged kickbacks and inflated construction contracts that spurred writedowns of 50.8 billion reais. The most-indebted global oil company is also struggling to reduce leverage and boost production in deep waters amid a slump in oil prices. Michael Vachon, a spokesman for Soros, didn't immediately respond to a request for comment on the investment firm's holdings during the first quarter. The Ibovespa lost 0.9 percent to 53,182.72 at 12:18 p.m. in Sao Paulo, trimming its weekly gain to 0.4 percent. Petrobras retreated as much as 1.7 percent. EFTA00655787 Embraer, Tim After boosting its holdings in Petrobras in the third quarter, Soros trimmed its stake in the oil producer by 60 percent in the last three months of 2014, Folha de S. Paulo newspaper reported on Feb. 19. Besides Petrobras, Soros also sold shares of planemaker Embraer SA and mobile carrier Tim Participacoes SA, eliminating its holdings in Brazilian companies, according to Estado. Soros gained a wide reputation for his investing prowess in 1992 by netting $1 billion with a bet that the U.K. would be forced to devalue the pound. With a net value of $28.4 billion, he's the 24th-richest person in the world, according to the Bloomberg Billionaires Index. Brazilian shares had entered a bull market in April, after rallying more than 20 percent from their 2015 low, on speculation government measures to shore up the budget would restore confidence and help Brazil keep its investment-grade credit rating. Since then, the benchmark stock gauge has slipped 6 percent amid bets the economy will slow further. The Ibovespa also joined a slide in global equities Friday amid growing concern Greece won't reach a deal to stave off default, curbing demand for emerging-market assets. "The mood is negative today with all this uncertainty regarding Greece," Alvaro Bandeira, a partner at Orama Asset Management, which oversees 280 million reais ($89.7 million), said by phone from Rio de Janeiro. "The impasse makes investors more cautious around the globe." For Related News and Information: Top emerging-market news: TOP EM <GO> Most-read emerging-market news: MNI EM I W <GO> Developing economy market moves: EMMV <GO> Emerging-market economic statistics: STAT4 <GO> World equity index rankings: WEIS <GO> --With assistance from Katherine Burton in New York. To contact the reporter on this sto Denyse Godoy in Sao Paulo at for this story: or o contact the editors responsible This communication may contain confidential and/or privileged information. If you are not the intended recipient (or have received this communication in error) please notify the sender immediately and destroy this communication. Any unauthorized copying, disclosure or distribution of the material in this communication is strictly forbidden. Deutsche Bank does not render legal or tax advice, and the information contained in this communication should not be regarded as such. EFTA00655788