BRAZIL, Oct. 6, 2000 (Global News)—The sale of Cesp Paraná’s controlling share, which will be auctioned December 6 for a minimum price of $1.73 billion, is expected to bring about a tough battle involving eight large international groups and one from Brazil.

The winning bidder will become the largest power generation group in Brazil. Cesp Paraná holds a 12% share of the domestic market.

Companies that have already shown their interest in participating in the process are: US’s AES, US’s Duke Energy, Portugal’s EDP, Brasil’s VBC, Belgium’s Tractebel, France’s EDF, France/Belgium’s Total Fina/ELF, Spain/Chile’s Endesa and US’s Southtern Electric.

The two big favorites, US Duke Energy and AES, own two thirds of the old state-run Cesp, which were auctioned last year. Duke kept Paranapanema and AES was granted Tietê.

Through the acquisition of Cesp Paraná, both Duke and AES would increase their market share in the power generation sector from 5% to 17%, which borders on the regulatory maximum 20% allowed by the National Electric Power Agency (Aneel).

©2000 The Global News