Shares in Brazil's Braskem soar as Petrobras, Novonor delay offering

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SAO PAULO, Jan 28 (Reuters) - Shares in Brazilian petrochemical producer Braskem SA (BRKM5.SA) soared on Friday after state-run oil company Petrobras (PETR4.SA) confirmed it had decided alongside conglomerate Novonor to postpone the sale via a share offering of their stakes in the firm.

Petrobras said it made the decision in response to inadequate demand and price conditions. Braskem also confirmed the cancellation of the share sale, but noted both Petrobras and Novonor still planned to sell the stakes in the future.

Braskem preferred shares were up 8.9% at 50.60 reais in morning trading, making it the top performer on Brazil's Bovespa stock index (.BVSP), which was down 0.3%.

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Analysts at Genial Investimentos said the sale cancellation lifted a weight off Braskem shares. "Prior to the controlling shareholders decision to sell their stakes in the firm, Braskem was trading above 52 reais per share, for example," they noted.

Reuters had first reported on Thursday, citing sources, that the oil giant and Novonor - which is in bankruptcy proceedings - had called off the move after lackluster demand and as Novonor's creditors considered the offered price too low.

"The instability of the capital market conditions resulted, at this moment, in levels of demand and price that are not appropriate for the transaction," Petrobras said in a Friday securities filing.

Petroleo Brasileiro SA, as the company is formally known, said it still wanted to sell its stake but would wait for favourable market conditions, without providing a timeframe.

Petrobras and Novonor decided to jointly sell their preferred shares in Braskem as part of a broader plan to fully divest from the firm.

Novonor, formerly known as Odebrecht, plans to use the offering proceeds mainly to pay creditors.

For Petrobras, the move is part of its plan to sell assets and reduce debt.

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Reporting by Gabriel Araujo; editing by Jason Neely and Tomasz Janowski

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