Bloomberg News

Eletrobras Makes Offer to Portugal for 21% EDP Stake

October 21, 2011

(Adds Portuguese statement on six expressions of interest in second paragraph.)

Oct. 21 (Bloomberg) -- Centrais Eletricas Brasileiras SA, Latin America’s largest publicly traded power company, bid for a 21 percent stake in EDP Energias de Portugal that the Portuguese government is selling.

Eletrobras, as the company is known, didn’t disclose the financial terms of the offer in a statement to Brazil’s regulator today. Portuguese state holding company Parpublica said earlier it had received six expressions of interest in the stake. It didn’t identify the companies involved.

China Three Gorges Corp. may have made a higher offer than Eletrobras for the stake held by Portuguese state holding company Parpublica, Lisbon newspaper Diario Economico reported, citing unidentified people. Brazilian rival Cia Energetica de Minas Gerais, known as Cemig, and Germany’s E.ON AG may also bid for EDP, Diario Economico said.

Portugal is selling the stake as one of several measures pledged in exchange for a 78 billion-euro ($108 billion) bailout from the European Union and the International Monetary Fund earlier this year.

Lisbon-based EDP, which has a market value of 8.82 billion euros, is Portugal’s largest power company.

Eletrobras rose 3.2 percent to close at 23.45 reais in Sao Paulo. The statement was released after the close of regular trading in Brazil. EDP gained 0.7 percent to 2.414 euros in Lisbon.

--With assistance from Joao Lima in Lisbon. Editors: Robin Saponar, Jim Silver

To contact the reporters on this story: Fabiola Moura in New York at fdemoura@bloomberg.net; Matthew Craze in Santiago at mcraze@bloomberg.net

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


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