Equities

Eletrobras shares plunge after Reuters reveals shakeup at Brazil energy ministry

Eletrobras shares plunge after Reuters reveals shakeup at Brazil energy ministry

Shares of Brazil’s biggest utility Eletrobras fell more than 10 percent on Apr. 6 after Reuters exclusively reported that Deputy Mines and Energy Secretary Paulo Pedrosa, an experienced technocrat who has been playing a key role in preparing the company for privatization, had decided to resign. The decision dashed investor hopes that Pedrosa would replace outgoing Minister Fernando Coelho Filho, smoothing the way for the privatization to proceed as planned. The decline in shares wiped nearly $1 billion off the company’s market capitalization.