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

To: Steve Fancy who wrote (21120)	7/13/2000 3:20:37 PM
From: Steve Fancy	Read Replies (2) \| Respond to of 22640

Brazil Crt Denies Appeal Of Ruling Blocking Banespa Sale Dow Jones Newswires July 13, 2000 SAO PAULO -- The process to privatize Brazil's Banco do Estado de Sao Paulo SA (E.BEP), or Banespa, suffered another setback Thursday when a Supreme Court judge denied an appeal against an injunction blocking the sale of the federally-run bank. Judge Marco Aurelio Mello said in a brief written statement that the appeal, which was filed by the federal Attorney General's office, was "inappropriate" as it reiterated a previous appeal already ruled on by a lower court. The Banespa sale has already been pushed back twice due to legal problems. The auction date is currently set for July 18, though government officials have acknowledged that won't be possible. A central bank official said earlier this week that the sales may have to be pushed back to 2002 if it doesn't happen before the end of the year as a new audit of Banespa would be necessary, in effect reinitiating the bidding process. In his decision, the judge said that the Attorney General may submit another appeal but that it will only be ruled on by the Supreme Court once the full court reconvenes in August after its winter recess. Banespa is the country's sixth largest bank, serving nearly three million clients in the country's wealthiest and most populous state of Sao Paulo. Brazil's four largest private banks and five international financial heavyweights have registered to bid. Banespa shares traded on the Sao Paulo Stock Exchange tumbled after the ruling. Shortly after the decision was announced, preferred shares were off 5.8% at 47.29 reals ($1=BRR1.81). At 1830 GMT, shares were down 6.4% at BRR47.00 -By Stephen Wisnefski; Dow Jones Newswires; (5511) 813-1988; stephen.wisnefski@dowjones.com