BRASILIA, April 18 Spanish power utility
Iberdrola is considering merging the operations of two
Brazilian companies in which it is a major shareholder and
eventually offer shares of the combined companies, newspaper O
Estado de S.Paulo said on Tuesday.
Neoenergia SA, in which Iberdrola shares control
with two government-led investors, and Elektro Redes SA
, almost fully owned by the Spanish firm, have kicked
off the merger talks a few weeks ago, O Estado said, citing
unidentified sources with knowledge of the talks.
The merger could pose an opportunity for Brazil's
state-controlled bank Banco do Brasil SA and its
employee pension fund Previ to sell their stakes in Neoenergia,
which is Brazil's largest private power distributor, the paper
Spokespeople to Neoenergia and Elektro did not immediately
respond to emailed requests for comments to Reuters. O Estado
said the companies had no comment.
(Reporting by Silvio Cascione; Editing by Bernard Orr)