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

To: Steve Fancy who wrote (1659)	4/14/1998 9:08:00 PM
From: md1derful	Read Replies (1) \| Respond to of 22640

SF: I for one have not cashed out the 120's yet..a nice double in one week..I'll take it. Still haven't decided whether to go ahead and go long the stock or try another month of options. Good luck

To: Steve Fancy who wrote (1659)	4/14/1998 10:23:00 PM
From: Steve Fancy	Read Replies (1) \| Respond to of 22640

Brazil to sell largest power distributor Wednesday Reuters, Tuesday, April 14, 1998 at 19:39 By Fatima Cristina SAO PAULO, April 14 (Reuters) - Brazil will sell Eletropaulo, Latin America's largest electricity distributor, on Wednesday at the nation's biggest power privatization auction so far, analysts said. The Sao Paulo state, Eletropaulo's majority shareholder, will sell 74.88 percent voting stakes in Metropolitana (SAO:ELP) and Bandeirante (SAO:EBN), the distributors resulting from the company's pre-privatization spinoff, for at least 2.026 billion reais and 1.014 billion reais, respectively, totalling a 3.04 billion real minimum price. A 36.69 percent voting stake in Empresa Paulista de Transmissao de Energia (EPTE) (SAO:EPT), the transmission unit created after the break up, also will be sold for a base price of 148.85 million reais. A fourth company, comprising the generating assets, also spun off from Eletropaulo will not be sold off. The distributors will be offered at closed-envelope auctions at 0900 local/1200 GMT, while the minority stake in the transmission firm will be sold at 1800 local/2100 GMT. Eletropaulo provides power to most of Sao Paulo, Brazil's richest state, supplying about 60,000 gigawatt hours a year, making it one of the most coveted power assets. It accounts for nearly 22 percent of the country's electricity use. After the sale of Eletropaulo's two distributors, about 70 percent of the nation's power distribution would be run by private investors, including Chilean, Spanish, US and Brazilian power firms. Eletropaulo will be the second Sao Paulo state-owned power utility to be privatized. Last year, the state sold CPFL (SAO:PAL) to a consortium led by local VBC Energia group, comprised of Votorantim industrial conglomerate, Camargo Correa (SAO:CCC) construction firm and Bradesco (SAO:BBD) bank, for 3.014 billion reais. And it will be the latest in a string of energy assets that have been transferred to private hands since 1995. Names of the bidders for Eletropaulo's distribution and transmission spinoffs will be revealed at 1800 local/2100 GMT Tuesday after they presented financial guarantees allowing them to participate in the sale. At least three groups are seen bidding for the distributors, said market sources. One consortium with VBC Energia, another with private power utility Light (SAO:LIG) and a third would include U.S. energy group Enron (NYSE:ENE). Private power utility Escelsa (SAO:ESC) might be joining forces with Enron, local newspapers said. Given the distributors' huge purchase price, analysts do not expect a very high premium at the auction. Market estimates a premium of about 30 percent to 35 percent at the Metropolitana sale, below an average premium of about 70 percent in last year's power privatizations. Metropolitana is the choicest asset covering Sao Paulo city and serving 4.2 million customers. Analysts forecast the Bandeirante auction to fetch a lower premium. The company covers non-metropolitan Sao Paulo, serving two million customers, mostly industrial clients. Eletropaulo's officials are upbeat about the sale, despite threats of legal challenges blocking the selloff. Sao Paulo Electricity Workers Union filed a lawsuit against the sale, but so far no injunction has been granted. fatima.santos@reuters.com))