| SAO PAULO
SAO PAULO Jan 22 Brazilian energy producer
Eneva SA has named former Goldman Sachs Group Inc
dealmaker Fabio Bicudo as chief executive officer, a
source with direct knowledge of the situation said on Wednesday.
Bicudo left Goldman Sachs this week after a four-year stint,
his second at the firm, the bank said. Last March, he became
co-chief of Goldman's investment banking unit in Brazil as part
of a shake-up that followed a capital injection and a shift
toward higher-margin client products.
Eneva declined to comment. Efforts to reach Bicudo on his
mobile phone for comment were unsuccessful.
Eneva, formerly known as MPX Energia SA, is jointly
controlled by E.ON SE, Germany's largest utility, and
Brazilian investor Eike Batista. Goldman Sachs was the main
adviser for E.ON on its investment in MPX, which the German
company renamed Eneva after building a 37.9 percent stake
through a series of stock purchases from Batista.
E.ON turned to Brazil for growth following the
implementation of tougher environmental rules at home and the
impact of Europe's economic crisis over the past five years. But
its bet on MPX and subsequently Eneva has proven costly: Shares
of the Rio de Janeiro-based company are down about 74 percent
since E.ON first bought a stake in January 2012.
Eneva is facing sluggish economic growth in Brazil and
potential caps on energy rates as the government battles
persistently high inflation. After a decade-long boom, flagging
investment and eroding business and consumer confidence led
Brazil's economy to shrink in the third quarter, its first
contraction since early 2009.
Analysts expect Eneva to post a net loss of 666 million
reais ($282 million) for 2013, according to Thomson Reuters
StarMine. The company operates 2,400 megawatts of installed
capacity, with a further 524 MW under construction.
Shares of Eneva rose 1.5 percent to 3.33 reais on Wednesday
afternoon. The stock is up 11 percent this year.
The source, who spoke on condition of anonymity, declined to
say when Bicudo starts at Eneva. Currently, Eduardo Karrer is
both CEO and head of investor relations at the company.
Bicudo's departure from Goldman comes after a flurry of top
executives left the Brazilian unit in the past year in the wake
of waning financial advisory activity. Some of those executives
include investment banker Rodrigo Mello and Adriano Koelle, from
the wealth management division, the source added.