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| AES, Duke, Southern, Endesa, EDP, EDF Register for Cesp Parana - Brazil |  | | Mercantil.com |  |
(BNamericas.com) - United States power companies AES, Duke and Southern,
Portugal"s EDP, France"s EDF and Endesa Spain have registered to
participate in the December 6 auction on the Sao Paulo stock exchange
(Bovespa) for control of generator Cesp Parana.
Despite local press releasing these names and Sao Paulo energy secretary
Mauro Arce claiming these companies are definitely participating, Bovespa
sources did not confirm the names to BNamericas.com.
Rather, capital market sources told BNamericas.com that the companies will
probably participate in the privatization, and added there could be more
bidders. "Apart from the documentation being confidential, there are
companies that use other names or register through stock brokers or
investment banks so it is difficult to have a clear idea if they will be
the only companies in the auction or not," the source said.
Other companies expected to participate in the sale are Brazil"s VBC
Energia and Belgium"s Tractebel, whose South America director Eric De
Muynck told BNamericas.com in October that the company would participate.
Electricity regulator Aneel has to inform Bovespa by November 27 which
companies it approves to take part in the auction, and on November 29
Bovespa will officially announce the participants. Control of Cesp Parana
will be sold for a US$941mn minimum.
With large international companies taking part in the sale, there would be
a good premium over the minimum price, Mauro Arce told local press, adding
that the company will emit US$500mn bonds to cover short term debt that
expires in 2001.
Cesp Parana has 6,319MW-installed capacity, all hydroelectric, that
represents 50% of all power consumed in Sao Paulo state. It is the last of
the spin offs from generator Cesp to be privatized, after Paranapanama was
sold to Duke and AES bought Tiete.
Business News Americas (BNamericas.com)
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