NEW YORK (TheStreet) -- Shares of Petrobras (PBR) - Get Petroleo Brasileiro SA Sponsored ADR Report were gaining in late afternoon trade on Monday as the company nears the sale of a natural gas pipeline network to a group directed by Brookfield Asset Management (BAM), sources told Bloomberg.
The Brazilian integrated energy company is considering selling more than the previously-announced 81% of its stake in the Nova Transportadora do Sudeste SA pipelines in what would be the company's largest-ever asset transaction, according to sources cited by Bloomberg.
Petrobras could agree to the estimated $5.5 billion to $6 billion deal as early as September.
The acquiring group headed by Brookfield is also comprised of sovereign wealth fund GIC, private equity firm First Reserve and China Investment.
Petrobras had previously set a target to divest of $15.1 billion in assets by the end of 2016 in order to reduce its debt.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "sell" with a ratings score of D+.
The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share.
You can view the full analysis from the report here: PBR