Bloomberg News

Eletrobras Plans to Make Offer to Buy EDP Stake by Oct. 21

October 11, 2011

(Updates with CEO comment in third paragraph, share price in last paragraph.)

Oct. 11 (Bloomberg) -- Centrais Eletricas Brasileiras SA, Latin America’s largest publicly traded utility, will bid for a 21.5 percent stake in EDP Energias de Portugal SA by Oct. 21, Chief Executive Officer Jose da Costa Carvalho Neto said.

Eletrobras, as the utility is known, will get project financing from Brazil’s national development bank, or BNDES, he told reporters today in Sao Paulo. The company doesn’t plan to sell shares or bonds, Costa Neto said. Eletrobras and BNDES will meet this week to decide the amount of the financing.

“We have our limit, but we are not getting into this to lose,” Costa Neto said, declining to comment on the value of the bid. “It is a great opportunity.”

The stake, being sold by the Portuguese government, is one of the measures the government pledged in exchange for a 78 billion-euro ($112 billion) bailout from the European Union and the International Monetary Fund earlier this year.

Lisbon-based EDP, which has a market value of 8.76 billion euros, is Portugal’s largest electricity company. EDP declined to comment, according to an e-mailed response to Bloomberg News.

Banco Santander SA is advising Eletrobras on the bid

Eletrobras rose 42 centavos, or 1.9 percent, to 22.25 reais at 4:49 p.m. in Sao Paulo trading.

--Editors: Robin Saponar, Dale Crofts

To contact the reporter on this story: Lucia Kassai in Sao Paulo at lkassai@bloomberg.net

To contact the editor responsible for this story: Dale Crofts at dcrofts@bloomberg.net


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