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Strategies & Market Trends : Telebras (TBH) & Brazil -- Ignore unavailable to you. Want to Upgrade?

To: Steve Fancy who wrote (21029)	6/12/2000 12:15:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Brazil may sell state utility Furnas in share blocks Reuters, 06/8/2000 19:33 BRASILIA, June 8 (Reuters) - Brazil said on Thursday it planned to sell major state-run utility Furnas in small share blocks in a bid to prevent control from falling into the hands of one company. Expanding on long-held government plans to eventually privatize the utility, President Fernando Henrique Cardoso's spokesman said the objective of the sale was to turn Furnas into a "public corporation." While details still remain murky, members of Cardoso's cabinet and government allies in Congress said the government was considering selling off shares of Furnas in blocks of eight to 10 percent. But they added another possibility would be to limit the percentage stake that any one company could hold in Furnas, one of three large electricity generators owned by government- controlled power holding Electrobras (SAO:ELECT6). The privatization has been hotly contested in Furnas' home state of Minas Gerais, where Gov. Itamar Franco has threatened to use all legal and judicial means to prevent its sale. "Furnas is strategic, profitable, well-managed and there is no reason to sell it to private capital," Franco said in March. The government did not say on Thursday whether it intended to retain a stake in the utility giant. Copyright 2000, Reuters News Service