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Enron Mail |
---------------------- Forwarded by Rob G Gay/NA/Enron on 02/28/2001 02:08 AM
--------------------------- "Rivera, Nancy A." <NRIVE@opic.gov< on 02/27/2001 12:21:00 PM To: "'Gay, Rob (Enron)'" <rob.g.gay@enron.com<, "'Anderson, Peter'" <Peter.N.Anderson@ENRON.com<, "'Dutt, Ranabir'" <rdutt@ei.enron.com< cc: Subject: FW: Tourinho & Sampaio sacked FYI < ** Tourinho Exit Could Affect Power Privatizations - Brazil ** < < (BNamericas.com) - The dismissal of Brazil's mines and energy minister < Rodolpho Tourinho could affect the planned privatization of electricity < companies in a negative or a positive way, either accelerating or < stagnating the process depending on his replacement. < < The market reacted negatively to Brazilian President Fernando Henrique < Cardoso's sacking on Friday (Feb.23) of Tourinho and social security < minister Waldeck Ornelas, and the subsequent resignation of Firmino < Sampaio from the presidency of state power holding company Eletrobras < president. < < Directors and presidents of all federally owned power companies, such as < Eletrosul, Eletronorte, Furnas and Chesf, could also be replaced as a < consequence of infighting within the ruling coalition government. < < Electricity company shares fell by up to 4.4% on the Sao Paulo stock < market, as was the case with Parana state integrated power company Copel, < as well as Cemig and Celesc, which later recovered. Eletrobras shares fell < 1%-plus on Friday but closed the day stable. < < The repercussions of Tourinha's departure - which is a response to raising < tensions within the fractious four-party ruling coalition ahead of 2002 < presidential elections - will be felt Thursday and Friday when trading < resumes in Brazil after the Carnival holiday. < < The two ministers were allied to senator and ex-governor of Bahia state < Antonio Carlos Magalhaes of the conservative Liberal Front Party (PFL), < with which the directors and presidents of companies controlled by < Eletrobras are also connected. < < If Cardoso decides to break with Magalhaes there could be a virtual < restructuring of the state electricity sector, controlled for more than 20 < years by the Bahian politician. However, some sources say that another PFL < faction, led by Jorge Bornhausen, is negotiating with Cardoso to ensure < the continuity of the alliance with Cadoso's social democratic party PSDB. < < Other sources, cited in local press, sustain that while Magalhaes < maintains his network of collaborators in Eletrobras, Cardoso will not be < able to break with him. < < Magalhaes' influence in the country's electricity system dates back to < 1976, when the military government of general Ernesto Geisel occupied the < Eletrobras presidency. Since then Magalhaes has maintained his influence < and collaborators in the state electricity company. < < Eletrobras controls 14 companies in all, among them generators Furnas, < Chesf and Eletronorte, as well as Eletronuclear, which owns the nuclear < centers Angra 1 and 2 and transmission company Eletrosul. < < By staff reporter Alejandro Tumayan < Business News Americas (BNamericas.com) < < <
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