RIO DE JANEIRO, March 8 Reuters Investor frustration with a meager dividend from Brazil39;s staterun oil firm Petrobras wiped out over 50 billion reais 14 billion of its market value on Friday after governmentappointed board members voted down a more generous payout.

The nearly 10 drop in shares reflects investors39; biggest frustration yet with Chief Executive Jean Paul Prates, who has tried to balance the interests of minority shareholders with a leftist government eager to see more capital spending.

Petrobras has been a major cash cow for its shareholders in recent years, including the Brazilian government, with the prior management paying out far more than Western oil major peers.

Under new management picked by President Luiz Inacio Lula da Silva, the company had pared back its payouts, but an extraordinary dividend was still widely expected in the market.

The company39;s management proposed on Thursday a payout of 50 of the extraordinary dividend allowed by its bylaws for the fourth quarter. Prates said he proposed the extra dividend but abstained from the board vote, where board members backed by the government voted it down.

In a fourthquarter earnings release, Petrobras said it would only pay a routine dividend of 14.2 billion reais 2.9 billion to shareholders, while 43.9 billion more would be set aside in a fund for capital remuneration.

Goldman Sachs analysts told clients that investors had voiced expectations of a 3 billion to 4 billion extraordinary…