Neves say never

6 October 2014 By Kevin Allison

The $95 bln Brazilian petro-giant’s stock leapt after pro-business candidate Aecio Neves put in a strong showing against President Dilma Rousseff. But even if Neves wins in a runoff, Petrobras will still be saddled by the massive debt and bad investments of the Rousseff era.

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Shares of Petrobras, Brazil’s state-owned oil company, rose as much as 17 percent on Oct. 6 after pro-business candidate Aecio Neves placed second against incumbent President Dilma Rousseff in the first round of Brazil’s national elections.

By midday, Petrobras shares were trading 13 percent above their Oct. 3 closing price, implying a $12 billion boost to the petro-giant’s market value.

Neves, who had recently been trailing a distant third in the presidential race, won 33.6 percent of the vote, which will now proceed to a runoff. Rousseff won 41.6 percent of votes cast. Neves’ fellow challenger Marina Silva won 21.3 percent.

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