Brazil Tractebel Makes Offer for Camargo Hydro Assets -Estado

Brazilian utility Tractebel Energia (TBLE3.BR) has made an offer for stakes in several hydroelectric generation projects currently owned by local construction firm Camargo Correa, the company's chief executive said Tuesday, according to the local Estado newswire.

Tractebel Energia CEO Manoel Zaroni said the company is seeking to buy Camargo Correa's 6.35% stake in Machadinho Energetica. Machadinho controls a 9.9% stake in the 3,500 megawatt capacity Jirau hydroelectric project on the Madeira River in the Amazon region. Tractebel's parent company GDF Suez SA (GSZ.FR) already has a 50.1% stake in the project. Machadinho also has a 4.5% stake in the 1,100 MW Estreito hydroelectric project in the northern state of Tocantins and an 83.1% interest in the smaller Machadinho hydroelectric project.

The purchase would solidify the existing stakes of Tractebel and GDF Suez in the projects, said Zaroni, who would not reveal the size of the offer.

Zaroni said the company would make the purchase utilizing company cash reserves.

- By Alastair Stewart; Dow Jones Newswires; 5511 2847-4520; [e-mail]