By Rogerio Jelmayer 
 

SAO PAULO--Brazilian electricity generator and distributor Neoenergia SA (GNAN3B.SM) said late Thursday that it is in talks to acquire a 58% stake in local power generation company Itapebi Geracao de Energia S.A.

The company, which did not disclose the potential value of the acquisition, said that of the total stake to be acquired, 19% is held by the investment bank unit of state-run bank Banco do Brasil SA (BBAS3.BR).

Another 16.4% is controlled by Previ, the pension fund of workers of Banco do Brasil, while 22.6% is controlled by Spanish utility Iberdrola SA (IBE.MC).

In a separate statement, Banco do Brasil confirmed the talks.

Itapebi posted gross revenue of 334 million Brazilian reais ($145 million) in 2012 and a net profit of BRL186 million.

The transaction must also be approved by regulatory bodies, Neoenergia said.

Write to Rogerio Jelmayer at rogerio.jelmayer@wsj.com

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