Article from Brazil Financial Wire
Citibank: Privatizations may bring US$64bn by 2001
Bras¡lia, 23 - The definition of the privatization models of the country's energy and telecommunications holding companies, Eletrobr s and Telebr s, respectively, has led Citibank to forecast that the country should accumulate US$64bn with oncoming privatization auctions. In the federal level, Eletrobr s should bring revenues amounting to US$21bn and Telebr s some more US$10.5bn, whereas state-owned companies, like Sao Paulo state energy utility, Cesp, is estimated to raise US$7.9bn.
According to Citibank, Eletrobr s's privatization model should involve the sale of other energy generation and transmission companies in the system, such as Eletrosul, Furnas, Chesf, Eletronorte. Eletrobr s holds almost 100% of those companies' assets, while the federal government controls 55.8% of Eletrobr s' capital.
Citibank also estimates that the auctions of fixed telephony companies' should snap up some US$6.6bn for govenment coffers, according to a sale model that foresees the creation of three holding companies: Telesp, Telesul, and Telenorte. Telesp's privatization should generate revenues of US$3.2bn. In the case of Telesul, which will be comprised of the telecoms of the Santa Catarina, Paran , Mato Grosso, Mato Grosso do Sul, Rond“nia, Acre, Goi s and Tocantins states, as well as that of the Federal District, predictions point to revenues totaling US$1bn.
The third holding, Telenorte -- composed of telecoms from the states of Rio de Janeiro, Minas Gerais, Esp¡rito Santo, Par , Amap , Amazonas, Roraima and the the northeastern states -- has been valued at US$2.4bn.
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