BRASIL: Soros Fund Dumped ALL Petrobras Shares Over Dilution And Safety Concerns.

BLOOMBERG/ Alexander Cuadros/     The $25 billion Soros Fund Management sold  ALL of its 9.1 million Petrobras ADRs of common stock and 5.88 million ADRs preferred shares in the second quarter as investors continue to speculate that the PBR stock offering slated for next month will dilute earnings. Petrobras is also suffering from deep water safety concerns raised after BP's Gulf of Mexico gusher.

Billionaire George Soros Cuts Stake In Petrobras.

BLOOMBERG.

Billionaire George Soros' hedge-fund,Soros Fund Management LLC, sold 22 million U.S.-listed common shares of Petrobras(ADRs) while buying 5.8 million of the company’s U.S.-traded preferred shares.

"Soros is taking advantage of the spread between the two types of U.S.-listed Petrobras shares, said Luis Maizel, president of LM Capital Group LLC, which manages about $4 billion. The common shares were 21 percent MORE expensive than preferred today, according to data compiled by Bloomberg.

“He knows he held a voting right in the common shares that would never translate to actual power,” Maizel said in an interview from San Francisco. “He’s just playing the spread.”