Indicate by check mark whether the registrant by furnishing the information contained in this Form is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes ______       No ___X___

Disclaimer

Banco Itaú BBA S.A. was hired by Braskem S.A. (“Braskem” or “Company”) to prepare an economic and financial Valuation Report (“Valuation Report”) of the following companies: (i) Copesul - Companhia Petroquímica do Sul (“Copesul”), (ii) Ipiranga Petroquímica S.A. (“IPQ”), (iii) Petroquímica Paulínia S.A. (“PPSA”) and (iv) Ipiranga Química S.A. (“IQ”) (Copesul, IPQ, IQ e PPSA, together, the “Assets”) and of (vi) Braskem, in connection with the potential share incorporation (incorporação de ações) of a company named Grust Holdings S.A. which will hold Petróleo Brasileiro S.A. – Petrobras’s (“Petrobras”) and Petrobras Química S.A. – Petroquisa’s (“Petroquisa”) equity holdings in the Assets pursuant to article 252 of the Brazilian Corporate Law (the “Transaction”) . Braskem, Petrobras and Petroquisa will be hereafter referred to as Transaction Parties. The Assets and Braskem will be referred to as the Companies.

The Valuation Report was originally prepared in the Portuguese language and the Portuguese language version shall be considered as the only document valid for all legal purposes. In case there is any inconsistency between the Portuguese Version and this free translation into English the Portuguese version shall prevail.

1. This Valuation Report was prepared solely for the use of the Company, its board of executive officers, board of directors and general shareholders meeting and also for Grust Holdings’s S.A. general shareholder meeting, in connection with the evaluation of the Transaction and shall not be used or relied upon by any other person to whom this Valuation Report is not expressly addressed, as mentioned above, or for other purpose s other than the ones described herein. This Valuation Report, including its analyses and conclusions, is not a recommendation to any shareholder or director of Braskem or of Grust Holdings S.A. with respect to the exercise of its voting rights or the actions that may be taken with respect to any matter related to the Transaction. This Valuation Report is dated of December 31, 2007, except as provided in item 9 below.

2. In arriving in the conclusions presented in this Valuation Report, among other actions, we have: (i) reviewed the consolidated financial statements of: (a) the Company, for the years ended on December 31, 2005, 2006 and 2007, duly audited by KPMG Auditores Independentes, (b) of Copesul, for the years ended on December 31, 2005, 2006 and 2007, duly audited by PricewaterhouseCoopers, (c) of IPQ, for the years ended on December, 31 2005, 2006, and 2007, duly audited by PricewaterhouseCoopers; and (d) of IQ, for the years ended on December, 31 2006, and 2007, duly audited by PricewaterhouseCoopers; (ii) we reviewed other Companies’ information, including projections prepared by the Company and by third parties hired by the Company (including price projections for the main products and raw materials prepared by CMAI (Chemical Market Associates, Inc.)); (iii) we held discussions with members of Braskem’s management on the Companies’ business and perspectives; and (iv) we took into consideration other public information, financial studies and analyses, economic research and market data, which we consider relevant in order to analyze the consistency of the information received from the Company (together, the “Information”) .

3. Regarding our review, we have assumed that all Information used in this Valuation Report is true, precise, and complete and all information that may be relevant was made available to us. As for the portion of Information that embodies projections or estimates of future events, we have assumed that such Information reflects the best estimates currently available for the Companies’ future performance. Also, regarding our review of the Information, we have analyzed its consistency, but we have not independently checked any part of the Information, or conducted any investigation or evaluation of any of the Companies’ assets or liabilities (contingent or not), and we have not received any report on the subject. We were also not asked to conduct (and we did not conduct any) physical inspections of the Companies’ properties or facilities. Finally, we have not evaluated the Companies’ solvency or fair value, considering the laws regarding bankruptcy, insolvency or of similar effect.

4. Due to the limitations mentioned above in item 3, we are not providing nor will provide, explicitly or implicitly, any representation or warranty regarding any Information used to reach the conclusions expressed in this Valuation Report. In the event that any of the assumptions mentioned on section 4 of this Valuation Report does not materialize, or in any way the Information is found to be incorrect, incomplete, or imprecise, our conclusions can be substantially altered.

5. In addition, to the extent that our analysis was made based on the discounted cash flow method, we have assumed a macroeconomic scenario consistent with market consensus compiled and published by Brazil’s Central Bank, which may not material ize or be substantially different than actual results. Given that the analysis and the numbers are based on the forecasts of future results, they may not accurately correspond to actual and future financial results for the Companies, which can significantly be more or less favorable than those suggested by our analysis. Moreover, considering that those analysis are intrinsically subject to uncertainties, being based on various events and factors that are beyond our and the Companies’ control, we accept no liability in case future results of the Company and/or any of the Assets substantially differ of the results presented in this Valuation Report. There is no guaranty that the Companies’ future results will correspond to the financial projections that have served as the basis of our analysis and that the differences between the projections employed and the Companies’ financial results will not be relevant. The Companies’ future results can also be affected by market and economic conditions.

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6. The preparation of a financial analysis is a complex process that takes into account a number of determinations regarding the more relevant and appropriate methods for a financial analysis, and also regarding use of such methods. We have arrived at a final conclusion based on the results of all analyses conducted, considered as a whole, and we haven not drawn conclusions based on, or related to any of our analysis’ factors or methods, individually. Therefore, we believe that our analysis must be considered as a whole and that the consideration of parts out of our analysis and of specific elements, not taking into consideration the whole analysis and conclusions, might result in a incomplete and incorrect understanding of the processes used for in our analysis and of our conclusions.

7. This Valuation Report only indicates a value estimate, under our criteria, derived from the use of the evaluation method called discounted cash flow, or of transaction comparable multiples, as the case may be case, which are widely used methods financial evaluation and which do not evaluate any other aspect or consequences of the Transaction or of any contract, agreement, or understanding entered into in connection therewith. We do not express any opinion regarding the value of the shares issued in the context of the Transaction, or regarding the value to which the Companies’ shares will be traded in the securities market at any time. Additionally, this Valuation Report is not and should not be used as (i) as a fairness opinion regarding the Transaction or (ii) a recommendation regarding any aspect of the Transaction. In addition, this Valuation Report does not discuss the strategic and commercial merits of the Transaction or of the strategic decision that have led to the Transaction. The results presented in this Valuation Report relate solely to the Transaction and are not to be used or relied upon on the context of any transaction, current or future, regarding the Companies, the economic group they are part of, or the sector in which they operate.

8. Pursuant to Braskem’s instructions, the net debt calculation used in this Valuation Report takes into consideration some adjustments related to facts occurred after the date of December, 31, 2007; these facts are specifically, (i) the payment of the third installment of the acquisition of Ipiranga Group’s petrochemical assets by Ultrapar Participações S.A., made on February, 27, 2008, (ii) the earn-out payment to Politeno Indústria e Comércio S.A.’s former shareholders, made on January, 2, 2008; and (iii) the amount to be received for the sale of Braskem’s interest in Petroflex Indústria e Comércio S.A., according to the press release published on December, 13, 2007.

9. Also pursuant to Braskem’s instructions, the calculation of the sum of Grust Holdings S.A. shareholdings in the Assets considers the shareholdings held on March 31, 2008.

10. In response to Braskem’s request, and as an illustration only, we have presented in Appendix V an evaluation exercise of the Company (“Evaluation considering Synergies”), which presents Braskem’s valuation (on a stand alone basis) increased by the incremental value correspondent to synergy gains resulting from the Transaction as estimated by the Company. Itaú BBA has not carried any evaluation or analysis regarding such estimate and such estimate was not taken into consideration in the preparation of the Valuation Report.

11. Our Valuation Report is necessarily based on information that was made available on this date and considers prevailing market, economic and other conditions, as they are currently presented and assessed. Although the unfolding of current and future events may affect the conclusion presented in this Valuation Report, we undertake no obligation to update, revise, rectify or revoke this Valuation Report, in whole or in part, as a result of any event or unfolding of an event or for any other reason.

12. Our analysis does not distinguish between different classes and types of shares issued by the Companies, if applicable, and do not take into consideration operational, tax (including the amortization of goodwill), or other profits or losses, we also have not taken into account any benefits that may derive from synergies or any incremental value or cost that may result from the conclusion of the Transaction, should it be concluded, or of any other Transaction. Our analysis also does not take into account the profits or losses that may material ize after the Transaction as a result of any change in the course of business or business strategy.

13 The Company has agreed to reimburse and indemnify us and certain persons related to us in connection with certain responsibilities that may arise of our engagement. We have received a fee to prepare the Valuation Report and such fee is not contingent on the conclusion of the Transaction.

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14. We have from time to time provided investment banking, commercial banking, financial services and other types of services to the Company and its affiliates and also to the Assets and to Petrobras and to other companies involved in the Transaction in respect of which we have received compensation, we expect to continue to provide those services to those companies and to receive compensation in connection therewith. We and our affiliates provide a wide range of financial and other services related to securities, brokerage and investment banking. In the regular course of our business, we and our affiliates may buy, hold or sell, for our own account or for the benefit of clients, shares, bonds and other securities or financial instruments (including bank loan and other) issued by or against Braskem, the Assets, Petrobras or any other company involved in the Transaction, as well as providing investment banking and other services to those companies. We believe that those services do not pose a conflict of interest that would have the affect of diminishing our independence in our role as a financial analyst of companies. In addition, the analysts employed by our research departments and by other divisions within the Itaú Group may base their analysis and reports in different assumptions (operational, market or otherwise) and methodologies than those employed in the preparation of this Valuation Report and, as a result, reports and publications made by those professionals may contains different results and conclusions than those of this Valuation Report. Those professionals are independent and in no way professionally connected to the professionals in charge of the preparation of this Valuation Report. We have adopted compliance procedures to preserve the independence of our research analysts, who may have different views than those of our investment banking department. We also adopt compliance procedures to preserve de independence between our investment banking division and other departments within Itaú BBA and within other companies belonging to the Itaú Group, including, without limitation asset management, proprietary trading desk and debt and capital markets.

15. We have not provided advice on accounting, audit, legal or tax matters in connection with this Valuation Report.

16. The financial calculation presented in the Valuation Report may not result always in an exact sum as a result of rounding.

Banco Itaú BBA S.A.

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Table of Contents

5

Methodology and Assumptions

Braskem Operacional, Copesul, IPQ, and PPSA’s Equity Value was calculated using Discounted Cash Flow Methodology

IQ’s Economic Value was calculated based on Comparable Companies’ Transactions Multiples

7

Companies Valuation Summary

Notes:
1 Braskem’s interests in Copesul, IQ, and PPSA are not considered
2 The comparable companies' average transactions multiples is considered (see page 58)
3 Stakes directly or indirectly held by Braskem in the Companies
4 This company is 100% owned by Petroquisa and holds Petrobras/Petroquisa’s direct and indirect stakes in IQ, IPQ, Copesul, and PPSA
5 Pro forma stakes directly or indirectly held by Grust Holdings S.A. in the Companies (according to note 9 on page 3)
6 Range based on a 5% above and below the valuation’s average point

8

Itaú BBA’s Qualifications

Itaú BBA has a proven track-record in valuating companies, with outstanding participation in mergers and acquisitions in the Brazilian market:

10

Itaú BBA´s Experienced Team

11

12

Evaluator’s Statements

º Itaú BBA declares, for the purposes of Order (CVM – Brazilian Securities and Exchange Commission) 319/99, that, on March 31, 2008:

– Has no direct or indirect interest in the Companies, or in the Transaction, and that there is no other relevant circumstance that may typify conflict of interest;

– The Companies' majority shareholders or the administrators did not direct, limit, hinder, or practice any act that have, or might have jeopardized the access, the use, or the learning of information, assets, documents or work methods that were relevant for the quality of the conclusions;

– There is no conflict or pooling of interests, real or potential, with Braskem, or regarding the minority shareholders, or the Companies, their partners, or regarding the Transaction

13

Braskem – Company Description

Company Description				Shareholder Structure
º	Braskem is the Latin-American leader of the thermoplastic- resin market, focusing on polyethylene, polypropylene, and PVC
	– Consolidated net revenues of R$18.8 billion and production of 2.8 million tons of resins in 2007
º	Braskem was the country’s first integrated petrochemical company, that is, it combines the plastic production chain’s first- and second-generation manufacturing operations into a single company
º	On December 31, 2007, Braskem’s main subsidiaries were the following:
	º	IQ
	–	One of the main distributors of chemical and petrochemical products in South America
	–	Consolidated revenues of R$500 million, in 2007
	º	IPQ
	–	A second-generation petrochemical company, it is responsible for the production of thermoplastic resins
	–	Consolidated revenues of R$2.1 billion and production of 627 million tons of resins, in 2007
		Copesul
	–	A first-generation petrochemical company located in Triunfo’s Petrochemical Complex
	–	Net Revenues of R$7.2 billion and production of 2.2 million tons of resins, in 2007
	º	PPSA
	–	This company shall start its operations in the beginning of 2008, with an expected first production of 300,000 tons of polypropylene per year, and 350,000 tons per year, from 2010 on

Source: Company Reports and Itaú BBA

15

Copesul – Company Description

		Company Description		Shareholder Structure
º	A first-generation petrochemical company (a naphtha cracker)located in Triunfo's Petrochemical Complex and a supplier of ethylene, propane, and other basic raw material for second- generation plants (Braskem, IPQ, and Triunfo)
º	Production capacity of 1.2 million of tons of ethylene and 0.6 million of tons of propane per year
	–	Net revenues of R$7.3 billion and production of 2.2 million tons of raw materials, in 2007
º	It has a margin-sharing agreement with second-generation industries for price definition, which allows to apportion operational-margin profits and losses, between the first- and second-generation petrochemical companies, adjusting the prices in reference to the external price
º	Sales Mix: approximately 50% of net revenues come from ethylene, 24% from propane, and 26% from others

16

IPQ – Company Description

Company Description				Shareholder Structure
º		Latin America’s major producer of high density polyethylene (HDPE)
º		It also produces low density polyethylene (LDPE) and polypropylene (PP), setting a total of five plants in Triunfo's Petrochemical Complex (Rio Grande do Sul, Brazil)
º		It is controlled by IQ and holds a 39.2% stake in Copesul
º		Products: 76% of PE (high and low density), and 24% of PP
º		Net revenues of R$2.1 billion and production of 0.6 million tons of resins, in 2007

Source: Company Reports and Itaú BBA

17

PPSA – Company Description

Company Description				Shareholder Structure
º		Company on a pre-operational phase; operation starting in the beginning of 2008
º		Located in Paulínia, São Paulo, Brazil
º		The industrial unit was designed to work at an initial capacity of 300,000 tons per year of polypropylene (PP), and should reach 350,000 tons per year until 2010
º		It is Braskem’s strategic investment that allows the firm’s consolidation as Latin America’s major PP producer, and Americas’ second PP producer
º		It is controlled by Braskem (60%) and by Petrobras/Petroquisa (40%)

Source: Company Reports and Itaú BBA

18

IQ – Company Description

Company Description			Stockholder Structure
º	IQ is one of the main distributors of chemical and petrochemical products in South America, with three central plants, three logistic bases, and tanks in four Brazilian ports, spread throughout the States of Rio Grande do Sul, Rio de Janeiro, São Paulo, Paraná, Pernambuco, and Bahia
	– Chemical-product wholesale distributor, with over 5,000 clients in 50 different markets
	– Net revenues of R$500.3 million and EBITDA of R$18.8 million
º	It had 222 employees as of December 31, 2007

Source: Company Reports and Itaú BBA

19

Grust Holdings – Company Description

Company Description					Stockholder Structure 1
º	Grust Holdings S.A. (“Grust Holdings”) is a company 100% owned by Petroquisa that holds stakes only in petrochemical assets, that will be transferred by Petrobras and by Petroquisa to Braskem in the Transaction:
	º		IQ
	–		One of the main distributors of chemical and petrochemical products in South America
	–		Consolidated net revenues of R$500 million, in 2007
	º		IPQ
	–		A second-generation petrochemical company, it is responsible for the production of thermoplastic resins
	–		Consolidated net revenues of R$2.1 billion and production of 627 million tons of resins, in 2007
	º		Copesul
	–		A first-generation petrochemical company located in Triunfo’s Petrochemical Complex
	–		Net revenues of R$7.2 billion and production of 2.2 million tons of raw materials, in 2007
	º		PPSA
	–		This company shall start its operations in the beginning of 2008, with an expected first production of 300,000 tons of polypropylene per year, and 350,000 tons per year, from 2010 on

Fonte: Company
Note:
1 See Note 9 page 3

20

Companies’ Valuation Methodology

Braskem Operacional, Copesul, IPQ, and PPSA’s Economic Value was calculated using Discounted Free Cash Flow

Notes:

1 Adjusted net debt, according to Appendix II
2 See page 58 for the Comparable Transaction Multiples used

IQ’s Equity Value was calculated based on
Comparable Companies’ Transaction Multiples

22

Valuation Methodologies

Discounted Free Cash Flow		Comparable Multiples
• Basic assumptions		• Analysis based on multiples of comparable companies transactions (EV / EBITDA multiple of the last 12 months)
– 10-year projection period (2008 to 2017)
– Free cash flow analysis base date: December 31, 2007
– Projected models in nominal US Dollars
– WACC in nominal US Dollars
– Cash flow discounted assuming mid-year cash flow (mid-year adjustment)
– Companies individually valued, not considering any potential synergies
• Perpetuity
– Normalized EBITDA calculation, adjusting the petrochemical industry’s cycles
– Perpetual growth based on Gordon Model

23

General Assumptions for the Valuation Analysis

The adopted macroeconomic assumptions were based on consensus estimates compiled and published by Brazil’s Central Bank Macroeconomic assumptions

Source: Banco Central do Brasil (Brazil’s Central Bank) Focus Report, dated February 25, 2008

Note:
1 US inflation projection from the site “Congressional Budget Office”
2 Instituto Brasileiro de Geografia e Estatística - IBGE (Brazilian Institute of Geography and Statistics)

From 2012, the Selic, inflation, GDP growth rate projections were kept constant and the exchange rate projections reflect the upholding of the parity between US Dollar and Brazilian Real

24

Main Assumptions Used in the Valuation of Braskem

26

Main Assumptions Used in the Valuation of Braskem (cont.)

Note:

1 Despite the fact that the Company’s external attorneys believe in the success of the Company’s case requesting not to pay the CSLL [Social Contribution on net profit], following a conservative policy, we have considered the CSLL payment, for the whole period.

27

Sales Volume and Price

Source: CMAI and Braskem

Note:
1 Weighted average prices between local and foreign markets for the main products

28

Financial Projections

Notes:
1 COGS and Gross Profit do not include depreciation and amortization

29

Free Cash Flow to Firm

30

Discount Rate – WACC

The discount rate calculated for Braskem was of 9.99% in nominal US Dollars

Notes:

1 Based on 20-year US Treasury last three months average – Source: Bloomberg
2 Based on the last three months average of Brazil Global 27’s spread on US Treasury equivalent – Source: Bloomberg
3 Based on the arithmetic mean of the historic difference between S&P’s return, in the last 50 years (1955-2004) – Source: Ibbotson Associates’ Stocks, Bonds, Bills and Inflation 2004 Yearbook
4 Based on the arithmetic average of comparable companies' unlevered betas of 0.83, adjusted by the Company’s optimal capital structure. To calculate the beta, the following companies were considered: Sabic, Dow Chemical, Braskem, Nova Chemicals, Westlake, and Reliance
5 Itaú BBA’s estimate, for valuation purposes only
6 Based on the projected average rate, according to the criteria described on Note 1, page 27
7 Itaú BBA’s estimate

31

Sensitivity

32

Main assumptions used in the valuation of Copesul

34

Main assumptions used in the valuation of Copesul (cont.)

35

Sales Volume and Price

Source: CMAI and Braskem

Note:
1 Weighted average prices between local and foreign markets for the main products

36

Financial Projections

Notes:

1 COGS and Gross Income do not include depreciation and amortization

37

Free Cash Flow to Firm

38

Discount Rate – WACC

The discount rate calculated for Copesul was of 10.52% in nominal US Dollars

Notes:

1 Based on 20-year US Treasury’s last three months average – Source: Bloomberg
2 Based on the last three months average of Brazil Global 27’s spread on US Treasury equivalent - Source: Bloomberg
3 Based on the arithmetic mean of the historic difference between S&P’s return, in the last 50 years (1955-2004) – Source: Ibbotson Associates’ Stocks, Bonds, Bills and Inflation 2004 Yearbook
4 Based on the arithmetic mean of comparable companies' unlevered Betas of 0.83, adjusted by the Company’s optimal capital structure. To calculate the Beta, the following companies were considered: Sabic, Dow Chemical, Braskem, Nova Chemicals, Westlake, and Reliance
5 Itaú BBA’s estimate, for valuation purposes only
6 Based on Copesul’s effective tax rate
7 Itaú BBA’s estimate

39

Sensitivity

40

Main assumptions used in the valuation of IPQ

42

Main assumptions used in the valuation of IPQ (cont.)

43

Sales Volume and Price

Source CMAI and Braskem

Note:
1 Weighted average prices between local and foreign markets for the main products

44

Financial Projections

Note:
1 COGS and Gross Income do not include depreciation and amortization

45

Free Cash Flow to Firm

46

Discount Rate – WACC

The discount rate calculated for IPQ was of 10.73% in nominal US Dollars

Notes:
1 Based on 20-year US Treasury’s last three months average – Source: Bloomberg
2 Based on the last three months average of Brazil Global 27’s spread on US Treasury equivalent - Source: Bloomberg
3 Based on the arithmetic mean of the historic difference between S&P’s return, in the last 50 years (1955-2004) – Source: Ibbotson Associates’ Stocks, Bonds, Bills and Inflation 2004 Yearbook
4 Based on the arithmetic mean of comparable companies' unlevered betas of 0.83, adjusted by the Company’s optimal capital structure. To calculate the beta, the following companies were considered: Sabic, Dow Chemical, Braskem, Nova Chemicals, Westlake, and Reliance
5 Itaú BBA’s estimate, for valuation only
6 IPQ’s effective tax rate
7 Itaú BBA’s estimate

47

Sensitivity

48

Main assumptions used in the valuation of PPSA

50

Main assumptions used in the valuation of PPSA (cont.)

51

Sales Volume and Price

Source: CMAI and Braskem
Note:
1 Weighted average prices between local and foreign markets

52

Financial Projections

Note:
1 COGS and Gross Income do not include depreciation and amortization

53

Free Cash Flow to Firm