Brazil Demonstrators
Against Privatization of
State-Owned Company
About 500 demonstrators
opposed to the
privatization of a large
Brazilian electricity
producer Monday blocked
access to one of the
company's dams,
protesting over an
auction of the majority
stake in the state-owned
company.
According to a statement
released by Companhia
Energetica de Sao Paulo
SA, or CESP, the Monday
protest did not affect
the company's operation
and protesters only
occupied the public area
before leaving.
The privatization of the
state-owned company
which generates about 60
percent of the
electricity used in Sao
Paulo state requires a
minimum bid of 6.6
billion reals (3.8
billion U.S. dollars).
The activists with the
Landless Workers
Movement and Movement of
Dam-Affected People are
strongly opposed to the
privatization of
state-owned companies,
which they see as
handing over state
property to wealthy
investors.
Since Brazil's federal
government has not
promised to renew
licenses on two of
CESP's dams, many doubt
that the auction will
generate the minimum
bids and accordingly
CESP's stock confronted
a 10.7 percent loss
Monday on Sao Paulo's
Bovespa exchange.
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