CPFL, Neoenergia Shareholders Say No Agreement To Merge Companies
25 Fevereiro 2011 - 3:10PM
Dow Jones News
Major shareholders of Brazilian electricity distributors CPFL
Energia (CPL, CPFE3.BR) and Neoenergia (GNAN3B.SM) denied on Friday
that they had reached an agreement to swap shares, moving them one
step closer to a merger of the companies.
The Camargo Correa Group, which controls CPFL and is also the
owner of one of Brazil's largest construction companies, denied a
Thursday report by local newspaper Folha de S Paulo that it had
reached an agreement with two controlling shareholders of
Neoenergia.
Folha said that Camargo Correa had agreed with state-controlled
lender Banco do Brasil (BBAS3.BR, BDORY) and the bank's pension
fund Previ to a swap of shares in order to create one of Brazil's
biggest energy distributors. The merger would still need the
approval of Spain's Iberdrola (IBDRY, IBE.MC) as the company has
rights to buy shares sold by Previ and Banco do Brasil and
reportedly said it would block such a merger should Camargo Correa
take the lead in the newly formed company.
Previ denied on Thursday that it had reached an agreement. In a
separate note on Friday, Banco do Brasil also said that no such
agreement had been reached. The companies declined to comment on
whether they were in talks to merge their electric distribution
companies.
-By Paulo Winterstein, Dow Jones Newswires; +55 11 3544 7073,
paulo.winterstein@dowjones.com