August 30, 2017 / 3:10 PM / a year ago

Brazil may list, keep control of post office - source

BRASILIA, Aug 30 (Reuters) - Brazil’s government could list the national postal service without giving up control, underscoring growing momentum to privatize state assets after President Michel Temer decided to sell a majority stake in the largest power utility, a person familiar with the matter said on Wednesday.

The plan to list Empresa Brasileira de Correios e Telégrafos SA will come on the heels of efforts to turn the postal service around, said the source, who asked for anonymity because it has not been made public.

In recent months, the Temer administration has launched a massive worker retirement plan and cut costs, although the person said the magnitude of such efforts has been deemed as insufficient by officials.

Correios, as the Brasilia-based postal service is known, confirmed that a dismissal plan is under study, but declined to comment on the plan to list it.

Temer opted to privatize Centrais Elétricas Brasileira SA , the nation’s largest power utility, after divergences mounted with management over how to fix the company, four people familiar told Reuters this week. If successful, the Eletrobras deal could unleash a series of other privatizations, UBS Securities analysts said last week.

Still, some officials want Correios to be sold to private investors, the person said. The source added that the Communications Ministry is working on the best plan possible for the money-losing agency.

The pension fund of Correios has also endured heavy losses because of erratic investment decisions during the leftist Workers Party’s tenure in power. (Reporting by Leo Goy and Lisandra Paraguassú; Writing by Guillermo Parra-Bernal; Editing by Alistair Bell)

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