Business Services Industry

Brazil: Enron to bid for other gas concessions.

South American Business Information, May, 1999

Enron will bid for the 2 gas distribution concessions that will be auctioned by the Sao Paulo government (Brazil) between the end of 1999 and the beginning of 2000. Besides, the company also aims to acquire the 7 northeastern and southern gas distributors in which it already holds 41.5% stakes through the Gaspart holding. The Bahia government, for instance, will sell off its 17% stake in the local gas company Bahiagas by the end of 1999. Enron's bid for Sao Paulo-based Comgas was the 2nd best one (R$1.282bil). Comgas was acquired by British Gas for R$1.652bil, a 119% increase compared with its privatization price. Enron has been investing R$140mil in the Parana and Santa Catarina gas companies, which will have their distribution expanded so as to allow the...

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