The government of Sao Paulo is looking at divesting a minority stake in Cia Energetica de Sao Paulo SA after dropping plans to privatize the company, Relatorio Reservado reported. The report added that the government is likely to divest a minority stake to a private equity fund or seek partnerships with companies.

Companhia Energetica de Sao Paulo SA (CESP) plans to make acquisitions. Folha de S.Paulo reported that Government of Sao Paulo has abandoned plans to privatize CESP. It added that Sao Paulos State Governor, Jose Serra has ordered CESP to resume investments on new power plants and begin studies for possible takeovers. The report noted that Mr. Serra wants CESP to follow on the steps of CEMIG that has gone on an acquisition spree recently. CESP had been scheduled for privatization since late 1990s, but a Brazil-wide power shortage and subsequent rationing in 2001 delayed the plans. Sao Paulo state's most recent plan to sell its stake in the firm in 2008 was cancelled because of a slump in equity markets. Vilson Daniel Christofari, Chief Executive of CESP said, Now that we're over that phase of the thwarted privatization plans - and today this is an issue that is no longer under consideration - we are getting back to the normal phase of a company that has a series of plans for the future. He noted that CESP plans to invest initially in small power plants within Sao Paulo state and in wind farms.

Folha de S.Paulo reported that Government of Sao Paulo has abandoned plans to privatize Companhia Energetica de Sao Paulo SA (CESP). It added that Sao Paulos State Governor, Jose Serra has ordered CESP to resume investments on new power plants and begin studies for possible takeovers. The report noted that Mr. Serra wants CESP to follow on the steps of CEMIG that has gone on an acquisition spree recently. CESP had been scheduled for privatization since late 1990s, but a Brazil-wide power shortage and subsequent rationing in 2001 delayed the plans. Sao Paulo state's most recent plan to sell its stake in the firm in 2008 was cancelled because of a slump in equity markets. Vilson Daniel Christofari, Chief Executive of CESP said, Now that we're over that phase of the thwarted privatization plans - and today this is an issue that is no longer under consideration - we are getting back to the normal phase of a company that has a series of plans for the future.