Mobius labels record Petrobras cash call an 'abomination'

Mark Mobius has labelled the world record $70bn Petrobras rights issue an "abomination" and believes it could signal the globe is entering an IPO bubble.

As part of the last week's cash call, Petrobras issued about $42.5bn of stock to the Brazilian Government in exchange for the rights to develop 5 billion barrels of oil reserves. The Government's stake in the oil giant has increased to 48% from 40% following the deal. "The entire Petrobras issue is an abomination and a terrible violation of shareholder rights," Mobius said in a telephone interview from Kazakhstan," Mobius, who oversees $34bn as executive chairman of Templeton Asset Management, told Bloomberg. "We may be entering an IPO bubble. It means that people are just not looking...