The press release numbers work if the following 3 things happen: (1) An ADR holder receives 1 additional ADR for every 2 now held. Example: If you own 2 ADRs equal to 6 shares, you would now own 3 ADRs equal to 9 shares; (2) Each ADR becomes equal to 2 shares instead of 3; in the above example, the 3 ADRs you would own would now equal the same 6 shares you started with; and (3) each share, following the reverse split/split, becomes 2 shares, so your 3 ADRs become equal to 12 shares. I'm not certain this is how it works, but it would explain things and if your fears were valid the ADRs would have sold off today.
With regard to the dividend, I also thought it was lower than I expected, and than it's been recently. The cause was that they pay out 95% of earnings over the prior 6 months as a dividend and the earnings were lower than in 2009. But if you listened to the conference call this morning and viewed the accompanying slides, you'd see that the earnings drop was due mostly to an accounting change that applied not just to CPFL but other Brazilian companies as well. It was pointed out that without the change the earnings (and presumably the dividend) would have been a lot higher. I believe this was a one-time change so future earnings and therefore dividends should be higher. I don't know that for sure but if future earnings were expected to remain depressed then again I think the stock would have declined today.