Tuesday, 27 January 2009

Camargo Correa to Pay 2.1 Billion Reais for 14.5 Percent Stake in CPFL. Votorantim is Raising Cash Quite Fast, May Avoid Downgrade

Camargo Correa, the Brazilian engineering company involved in a range of businesses from heavy construction to energy, agreed to pay 2.1 billion reais for 14.5 percent of CPFL, the electricity distributor controlled by the Votorantim group. Yesterday we posted here (click right here) the S&P warning on the creditworthiness of the Votorantim group and its imminent need to sell assets to improve debt metrics. Well, these guys are moving quite fast to get rid of businesses or raise cash without losing control of some key units. Downsizing is a good move in moments like this, some say.

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