Braskem shares fell sharply on Thursday after state-owned oil major Petrobras said it has yet to decide when and how to proceed with a potential sale of its stake in the petrochemicals company.

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Petroleo Brasileiro SA, or Petrobras, stated in a securities filing that it is still undertaking studies on the proposed merger.

Braskem shares plunged 5.8% to 54.65 reais in early Sao Paulo trading, making it the biggest loser on the Bovespa index, which sank 1.3 %.

Petrobras, which owns 36.1 % of Braskem, has stated several times that it intends to sell its holdings.

Petrobras and Brazilian company Novonor were anticipated to start selling their stakes through a share offering in February, according to the Estado de S. Paulo daily.

Novonor, formerly known as Odebrecht, did not respond to a request for comment.

The conglomerate announced last week that it was considering selling its 38.3 % stake in Braskem through a stock offering.

Novonor had already advertised its Braskem stake for sale. Following the failure of that process, Reuters reported that the business was planning to exit Braskem through a stock offering.