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Brazil's Petrobras confirms pension funds join arbitration; says case unfounded
November 15, 2017 / 12:40 PM / 9 days ago

Brazil's Petrobras confirms pension funds join arbitration; says case unfounded

SAO PAULO, Nov 15 (Reuters) - Brazil’s Petroleo Brasileiro SA said late on Tuesday it was informed that the nation’s three biggest pension funds would join an arbitration case against the state-run oil company, adding it believed the case lacked merit.

In a securities filing, Petrobras, as the company is known, said it had been told pension funds Previ Caixa de Previdência, Funcef, and Petros Fundação, had decided to join the case in which shareholders are seeking compensation for losses related to a corruption scandal. That confirmed a Tuesday report in the newspaper Valor Econômico.

“Petrobras reiterates that legislation does not support this initiative, and the company will defend itself to guarantee its interests and those of its shareholders,” the company said.

Petrobas added that the pension funds had not specified the value of their claims. However, Valor reported on Tuesday that Petros alone estimated it stands to win 4 billion to 7 billion reais ($2.11 billion).

Previ, Funcef, and Petros represent employees at Banco do Brasil, Petrobras, and state-bank Caixa Economica Federal, respectively.

Like many Brazilian pension funds, they have accumulated heavy losses from their investments in the last two years, particularly from owning shares of Petrobras and other companies being investigated in Brazil’s ‘Car Wash’ corruption scandal.

$1 = 3.31 reais Reporting by Gram Slattery; Editing by Bernadette Baum

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