* E.ON lacks the financial muscle to buy MPX alone, Valor
* Valor says E.ON is teaming up with BNDES, funds
* E.ON plans to seal deal next week, Valor reports
SAO PAULO, Feb 27 Germany's E.ON SE
plans to team up with a group of Brazilian banks and funds to
buy control of Brazil's MPX Energia SA, the energy
arm of billionaire Eike Batista's EBX empire, newspaper Valor
Econômico reported on Wednesday.
E.ON lacks the financial muscle necessary to buy MPX alone,
Valor said, without saying how it obtained the information. By
teaming up with other partners, the German company could pay 3
billion reais ($1.5 billion) for the stake that Batista has in
the company, Valor added.
State-development bank BNDES, through its
investment holding company BNDESPar as well as local asset
managers Dynamo Gestão de Recursos, Gávea Investimentos and
Bradesco Asset Management, could participate in the deal as
partners, Valor reported.
E.ON and EBX, the conglomerate that manages Batista's stakes
in mining, oil and logistics companies, declined to comment. A
spokeswoman for BNDES and BNDESPar in Rio de Janeiro did not
immediately respond to calls requesting a comment. Efforts to
reach executives at the other funds were unsuccessful.
E.ON already has an 11.7 percent stake in MPX, and the
transaction could boost it to about 34 percent, the newspaper
said. Executives from the German company are expected to return
to Brazil next week to announce the deal, Valor added.
One reason E.ON is not willing to make the purchase on its
own may be MPX's 5.4 billion reais debt, which may be more than
the company can absorb, Valor said. The German company is
seeking to increase its presence in Brazil to compete with
France's GDF Suez SA, the newspaper added.