Iberdrola mulls a multi-utility future in Brazil
Reuters, Thursday, July 30, 1998 at 22:03
By Adriana Brasileiro
RIO DE JANEIRO, July 30 (Reuters) - Spanish power company
Iberdrola (MADRID:IBE) said it bought parts of Brazilian telephone
company Telebras (SAO:TELB4) to provide clients with a package
of services, the company's Latin American director said.
"It's the global service idea -- a family could be our
client for power, water, gas, phone services, and whatever
other services we can offer them," said Esteban Serra Mont,
Iberdrola's director for Latin America.
He spoke late Wednesday in Rio de Janeiro after the $19
billion privatization auction of Telebras' 12 units.
Iberdrola, traditionally a power utility with 40 percent of
Spain's distribution market, acquired cellular telephone
provider Tele Leste Celular, which covers the states of Bahia
and Sergipe in northeastern Brazil.
The company led the consortium with a 62 percent stake
while Telefnica de Espaa (MADRID:TEF) had 38 percent.
A separate Telefnica-led consortium, which included
Iberdrola with a seven percent stake, won massive fixed-line
Telesp (SAO:TLSP3), the biggest of all the subsidiaries, with a
bid of 5.78 billion reais ($4.98 billion).
Iberdrola also bought a seven percent stake in mobile
operator Tele Sudeste Celular, which covers the densely
populated states of Rio de Janeiro and Espirito Santo.
"Overall, we invested $665 million here today," Serra Mont
said.
The company has been building its presence in Brazil since
last year, when it bought Bahia's state power utility Coelba
(SAO:CEE), and natural gas companies SEG and Riogas in Rio de
Janeiro.
Much of Iberdrola's new phone operations lie in the same
areas, allowing it to put in place its multi-utility plan.
Serra Mont said Iberdrola does not have experience as a
phone operator, but its partnership with Telefnica would
provide a cost-effective way of tapping into a new market with
existing Iberdrola clients.
Iberdrola would be drawing up an investment plan for Brazil
over the next three months.
"We don't know these companies well. We want to study the
situation before we can propose changes," Serra Mont said.
He said Iberdrola planned to continue expanding in
Brazilian water distribution and sewage treatment.
"We will definitely be in the CEDAE auction, when it
happens," Serra Mont said.
CEDAE is water company owned by Rio de Janeiro state which
serves 9.6 million customers. It is expected to be sold, but no
privatization date has been announced.
adriana.brasileiro@reuters.com))
Copyright 1998, Reuters News Service |
