Cesp Considers Spinoffs, Secondary Share Sale, Valor Reports
Cia. Energetica de Sao Paulo, the state-controlled utility, may split the company in several units or sell shares in a secondary sale after no bidders participated in a privatization auction, Valor Economico said.
Sao Paulo state, Cesp's controlling shareholder, planned to raise at least 6.6 billion reais ($3.8 billion) with the sale of 133.1 million shares, or 41 percent of Cesp's total capital, in yesterday's auction, according to the newspaper.
The spinoff of four of Cesp's six dams may attract investors and ease the renewal of their concession rights, the newspaper said, citing officials familiar with the plan.
Sao Paulo State Governor Jose Serra blamed the failure of the Cesp privatization on deteriorating market conditions stemming from the global credit market rout affecting the U.S., the newspaper said.
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