Brazil's Eletrobras Plans To Make Bid For EDP Stake
October 20 2011 - 1:06PM
Dow Jones News
Brazil's state-controlled electric utility Centrais Eletricas
Brasileiras SA (EBR, ELET6.BR) said Thursday it plans to go ahead
with an offer for a stake in Energias de Portugal SA (EDP.LB).
The Brazilian utility, known as Eletrobras, will submit its
proposal to Portugal's state-controlled utility on Friday, the
deadline for the offers, according to Eletrobras's press office in
Rio de Janeiro.
Eletrobras Chief Executive Jose da Costa Carvalho Neto said
earlier this month the company would meet with Brazil national
development bank BNDES to line up financing, according to reports.
At the time, he said Eletrobras didn't plan to sell shares or bonds
to finance the purchase. He also declined to give a value for the
bid, according to Bloomberg News.
However, this week Eletrobras said it is selling up to $2.5
billion in global bonds. In a note, Standard & Poor's said the
bond sale would likely finance operations at Eletrobras
subsidiaries.
Another Brazilian company that had previously shown interest in
buying an EDP stake, Cia Energetica de Minas Gerais (CMIG4.BR),
declined to comment. A person familiar with talks, however, said it
is very unlikely the company, known as Cemig, would go forward with
an offer.
Cemig, a utility controlled by the government of the state of
Minas Gerais, had said it may make an offer by itself or together
with Eletrobras. The person familiar with talks said there is a
"greater than 80% chance" Cemig won't make an offer.
-By Paulo Winterstein and Luciana Magalhaes, Dow Jones
Newswires; 55-11-3544-7073; paulo.winterstein@dowjones.com
EDP (EU:EDP)
Historical Stock Chart
From Sep 2024 to Oct 2024
EDP (EU:EDP)
Historical Stock Chart
From Oct 2023 to Oct 2024