Eletrobras in Record Slump as Rate Cuts Imperil Earnings
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Centrais Eletricas Brasileiras SA, South America’s largest power generator, posted its biggest decline on record on concern rate cuts ordered by the government will erode earnings.
Eletrobras, as the Rio de Janeiro-based utility is also known, slumped 20 percent to 7.84 reais at the close of trading in Sao Paulo, the biggest drop since at least January 1994, when Bloomberg records begin. The preferred shares fell 43 percent in the past four trading days. Brazilian markets were closed Nov. 15 and yesterday for holidays.