French state-owned power group, Electricit�e France (EdF) has decided not to bid for Brazilian power company Copel when the company is tendered for sale late October, according to a report in French newspaper Les Echos. The report said that the decision was due to concern over the instability of the Brazilian power market.

Interest in the sale of Brazilian power company Copel among major multinationals in the electric power sector was expected to be strong with a minimum sale price of R$4.32bn ($103.3bn) having been fixed and expectations that a price of R$5.1bn would be achieved. Other companies expected to be bidders include Spain’s Endesa, Germany’s RWE and Tractebel from Belgium.

Interest is also likely from the US groups AES and Duke Energy, as well as the Canadian Hydro-Quebec and the Italian Enel. The Brazilian company Cemig has however said that it is not now pursuing a bid.

EdF controls Light and also Eletropaulo Metropolinata. The company has operates in Brazil since 1996 and already has invested $2bn in the country, being $1bn for Light and Metropolitana. Tractebel controls Gerasul owner of the most extensive generating complex comprised by eight hydro and thermal electric power facilities. Endesa controls Cerj and Coelce.

Copel is the eighth largest Brazilian electric power generating company with a R$4.9bn net worth and R$7.9bn assets. The company’s installed capacity is 4545 MW. It owns 6690 km of transmission lines and is responsible for 6.9 per cent of installed capacity in Brazil.

Copel plans investments of R$938m between 2001 and 2003, being R$330 in distribution, R$262m in generating and R$248m in transmission. The winner will have to honour planned investments.