BRASILIA Dec 21 Cia Energética de Minas Gerais
SA has picked Bernardo Salomao as its new chief
executive officer as part of a management overhaul that aims to
speed up a debt-reduction plan, the power company said in a
filing on Wednesday.
The company said it has also appointed Paulo Castellari as
its new chief financial officer. Both appointments will take
effect on Thursday.
Reuters reported earlier this week that the company's board
had decided to replace current CEO Mauro Borges and CFO Fabiano
Maia amid growing tensions with the state of Minas Gerais,
Cemig's main shareholder, over plans to sell assets.
With his state under self-declared "financial calamity,"
Governor Fernando Pimentel was at odds with management over the
pace of the sale of some assets to help cut Cemig's 16.3
billion-real ($4.8 billion) debt
Shares of Cemig have rallied this week as investors are
optimistic the new management will make good on promises to sell
assets to reduce one of the heavy burdens in the Brazilian power
Cemig has been the center of battles between the state of
Minas Gerais and investors in the past. In 1999, former Minas
Governor Itamar Franco wrested control of Cemig from AES Corp
and Southern Co in courts, saying the
privatization process by which the firms took over the utility
(Reporting by Tatiana Bautzer; Writing by Alonso Soto; Editing
by Sandra Maler and Jonathan Oatis)