Liberty Posted July 26, 2013 Posted July 26, 2013 http://business.financialpost.com/2013/07/26/how-a-brazillian-oil-billionaire-lost-99-of-his-fortune/ Eike Batista, ranked as the world’s eighth-richest person last year, ceased to be a billionaire after Mubadala Development Co. converted an investment in his companies into debt, further eroding the value of his assets. Batista’s EBX Group Co. owes US$1.5-billion to Mubadala after the Abu Dhabi sovereign-wealth fund restructured a US$2-billion investment, said three people with knowledge of the deal. The fund no longer has equity in EBX, which paid back US$500-million after renegotiating earlier this month, said two of the people, asking not to be named because terms are private. Batista had already amassed at least US$2-billion in personal liabilities, meaning the 56-year-old entrepreneur now has a net worth of about US$200-million, according to the Bloomberg Billionaires Index. After peaking at US$34.5-billion when the transaction with Mubadala was announced in March last year, Batista’s fortune has evaporated as missed production and reserve targets at his flagship oil company OGX Petroleo & Gas Participacoes SA spurred selling of his group’s securities.
Guest wellmont Posted July 26, 2013 Posted July 26, 2013 here's another way to look at it. his wealth at the peak was simply a "print" and not real.
Shawn Posted July 27, 2013 Posted July 27, 2013 Most of Eike's net worth rising the way it did was a result of wild stock rises anyways. I don't think he was every truly worth more than $2 or $3 billion . Either way it's unfortunate, and goes to show you - man leverage kills.
mysticdrew Posted July 27, 2013 Posted July 27, 2013 That's pretty crazy... although at $200M, he's still wildly rich.
berkshiremystery Posted July 27, 2013 Posted July 27, 2013 That's pretty crazy... although at $200M, he's still wildly rich. I would consider his car in the living room crazy... LOL :o http://s17.postimg.org/5v2qxn073/image.jpg
ASTA Posted August 7, 2013 Posted August 7, 2013 Another great article about Batista from ft. 32.8bn to 0.1bn :D in 1 year that's impressive http://www.ft.com/intl/cms/s/2/e8a45324-fe77-11e2-b9b0-00144feabdc0.html#axzz2auOveDus
fareastwarriors Posted August 13, 2013 Posted August 13, 2013 http://www.bloomberg.com/news/2013-08-13/mubadala-said-to-be-in-1-bln-talks-for-batista-s-assets.html Mubadala Said to Be in $1 Bln Talks for Batista’s Assets
fareastwarriors Posted August 30, 2013 Posted August 30, 2013 http://www.cnbc.com/id/100999661 How a Brazilian billionaire lost $25 billion in 18 months
VersaillesinNY Posted September 16, 2013 Posted September 16, 2013 Brazil's Batista Says He'll Rise Again http://online.wsj.com/article/SB10001424127887323342404579077483334974894.html Now we know why he failed: the stars were not aligned... ------------ "If you look at my astrological map, this period wasn't favorable for me. The good period? It has already started, literally this month." Eike Batista, Sept 2013 WSJ interview
VersaillesinNY Posted October 5, 2013 Posted October 5, 2013 Lessons learned from Batista or How Brazil's Richest Man Lost $34.5 Billion: http://www.businessweek.com/printer/articles/157438-how-brazils-richest-man-lost-34-dot-5-billion ------------------- “You only have to do a few things right in your life as long as you don’t do too many things wrong.” Warren Buffett
CorpRaider Posted October 5, 2013 Posted October 5, 2013 I like the bloomberg businessweek, I recently resubscribed after catching the Hank Paulson/financial crisis installment and a couple of other interesting issues before and after. Also, I did it via a banner add on this site, so hopefully some of that helps defray some of the overhead here.
VersaillesinNY Posted February 6, 2015 Posted February 6, 2015 It seems that Batista has now lost 100% of his fortune... and a Fabergé egg. "Authorities raided billionaire Eike Batista’s mansion in Rio de Janeiro this morning, impounding seven vehicles, his mobile phone and 90,000 reais in cash, among other assets, according to a police spokesman. The action came after Brazilian federal judge Flavio Roberto de Souza this week ordered the seizures of financial assets of Batista, two of his sons, his ex-wife and the mother of his third child in his trial for alleged insider trading and market manipulation. The police raid comes as the 58-year-old struggles to pay down debt he owes to banks and sovereign-wealth fund Mubadala Development Co. and threatens to plunge the fallen magnate further into the red. Four of the startups he founded as part of his EBX group have gone bankrupt, beginning with its flagship OGX -- now known as OGPar -- in October 2013, followed by shipbuilder OSX, miner MMX and energy firm Eneva, formerly known as MPX. Batista, whose fortune peaked at $35 billion in 2012 before his commodity and logistics empire collapsed, is $1.2 billion in the hole, according to the Bloomberg Billionaires Index, giving him the rare distinction of being a “negative billionaire.” “All he has left now is debt,” said Marcelo Battisti, a former credit manager at Banco Itau who now heads his own consulting firm. “In normal conditions, becoming a negative billionaire is almost impossible, because most billionaires don’t tend to take on a lot of debt. Do you think Bill Gates has a mortgage?” [...]" http://www.bloomberg.com/news/articles/2015-02-06/brazil-s-negative-billionaire-batista-faces-asset-seizures http://www.wsj.com/articles/brazil-authorities-seize-cars-documents-from-eike-batista-1423231189
yadayada Posted February 6, 2015 Posted February 6, 2015 that is beyond stupid. How did he not dividend a couple 100 million out?
Liberty Posted February 7, 2015 Author Posted February 7, 2015 A few years ago there was a positive piece about him and his empire in the Economist. Now's probably a good time to find that article and re-read it just to show that if you don't do things right and build on solid foundations, it can all disappear in the blink of an eye.
ni-co Posted February 7, 2015 Posted February 7, 2015 that is beyond stupid. How did he not dividend a couple 100 million out? Because it's all about the game.
tengen Posted February 7, 2015 Posted February 7, 2015 A few years ago there was a positive piece about him and his empire in the Economist. Now's probably a good time to find that article and re-read it just to show that if you don't do things right and build on solid foundations, it can all disappear in the blink of an eye. I found this article published in The Economist in May 2012. With hindsight, the impression I have of Batista is that he was more of a schemer and a promoter than an empire builder (although I guess empire builders have to scheme and promote).
Liberty Posted February 7, 2015 Author Posted February 7, 2015 A few years ago there was a positive piece about him and his empire in the Economist. Now's probably a good time to find that article and re-read it just to show that if you don't do things right and build on solid foundations, it can all disappear in the blink of an eye. I found this article published in The Economist in May 2012. With hindsight, the impression I have of Batista is that he was more of a schemer and a promoter than an empire builder (although I guess empire builders have to scheme and promote). Thanks I think that's the one.
Jurgis Posted February 8, 2015 Posted February 8, 2015 I think there's a lot of confirmation bias when looking back and saying "yeah, I knew the guy was no good". I seem to remember a very positive interview with him some time ago and I don't think interviewer or any listeners having reservations. I doubt I'd have invested in his companies simply because I mostly don't invest in companies that are losing money. But I doubt I could have called his collapse.
tengen Posted February 24, 2015 Posted February 24, 2015 A Brazilian soap opera turn: judge in Batista's trial caught driving seized Porsche.
VersaillesinNY Posted February 25, 2015 Posted February 25, 2015 The Brazilian judge and Porsche driver has a curious definition of Batista's insider trading case: "Eike had insider information that he used to obtain profits. He is like the woman who cheats, and the shareholders are like her husband: By the time they found out it was too late.”
oddballstocks Posted February 25, 2015 Posted February 25, 2015 A Brazilian soap opera turn: judge in Batista's trial caught driving seized Porsche. "Oh uh, whoops... I saw the keys sitting there and figured it was part of my bribe..was I not supposed to take it?"
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