Braskem-Quattor deal still faces legal hurdles

26 January 2010 17:14  [Source: ICIS news]

SAO PAULO (ICIS news) –The courts in Rio de Janeiro are looking into two pending lawsuits that could reverse petrochemicals company Braskem's acquisition of Quattor, a court in Rio de Janeiro said on Tuesday. 

Alberto Soares de Sampaio Geyer is a partner on the Vila Velha, the holding company that controls Unipar, which in turn controls Quattor. He has filed a series of lawsuits seeking to halt the deal.

A judge earlier threw out one of his lawsuits.

Geyer filed two other lawsuits and is appealing another case.

Geyer filed the lawsuits in an attempt to change the share control of Vila Velha and give him more control in order to reverse the Braskem-Quattor deal announced last week.

Under that deal, Braskem would consolidate the petrochemical arms of Brazil’s Petrobras, Odebrecht and Quattor to make it the largest plastics resins producer in the Americas.

One of the lawsuits questions the legitimacy of a meeting where it was agreed that the preferential shareholder rights in Vila Velha would be extinguished.

Geyer said earlier he planned to offer a new bid totaling about reais (R) 280m ($154m) for shares in Vila Velha and take control of the company.

Meanwhile, Brazil’s Petrobras should decide this week which four executives could head Nova Braskem, the new company resulting from the acquisition of Quattor by Braskem.

Petrobras has the right to choose four executives for the board of directors.

In the Braskem-Quattor transaction, Unipar would receive R647.3m for its stake in Quattor.

The deal is still subject to approval from shareholders and Brazil's antimonopoly regulators.

($1 = R1.82)

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By: Hellen Berger
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