The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms & Conditions, Privacy Policy and Cookies before using this site. Please see our Subscription Terms and Conditions.

All material subject to strictly enforced copyright laws. © 2021 Euromoney, a part of the Euromoney Institutional Investor PLC.

<b>Brazil - The rights and wrongs of government</b>

    Headline: Brazil - The rights and wrongs of government
Source: Euromoney
Date: March 2000
Author: Brian Caplen

Minority investors get a raw deal in Brazil. Usually their shares do not have votes and they lose out in battles with the controllers. One fund manager says minorities in Brazil "don't have rights, only obligations". The government made things worse just so it could sell privatization assets at higher prices. But now reform is on its way. With privatization half-finished the government is the country's largest minority shareholder. Surprise, surprise - minorities are about to get better treatment. Brian Caplen reports

Investors in Brazil should position themselves alongside the government. A close look at the country's corporate law shows that it has changed with the specific aim of increasing the value of the government's own shareholdings.

For the past few years those working alongside the government such as foreign strategic investors in the privatization programme have profited handsomely and minority shareholders have suffered. That followed legal changes in 1997. Now with government becoming the country's largest minority shareholder the law is about to alter again - this time in favour of minorities.

"The privatization programme has been very aggressive but the government continues to be the largest minority shareholder in the country," says Gabriel Wallach, in charge of Latin American equities at Baring Asset Management in Boston.

You have reached premium content. Please log in to continue reading.

Read beyond the headlines with Euromoney

For over 50 years, our readers have looked to Euromoney to stay informed about the issues that matter in the international banking and financial markets. Find out more about our different levels of access below.


Unlimited access to and

Expert comment, long reads and in-depth analysis interviews with senior finance professionals

Access the results of our market-leading annual surveys across core financial services

Access the results of our annual awards, including the world-renowned Awards for Excellence

Your print copy of Euromoney magazine delivered monthly

£73.75 per month

Billed Annually


Unlimited access to and, including our top stories, long reads, expert analysis, and the results of our annual surveys and awards

Sign up to any of our newsletters, curated by our editors


Already a user?

We use cookies to provide a personalized site experience.
By continuing to use & browse the site you agree to our Privacy Policy.
I agree