Tractebel Leads Utilities by Avoiding Rousseff Rate Cuts
March 4, 2013 by Avila Capital Markets, Inc.
Tractebel Energia SA (TBLE3), Brazil’s biggest power utility, is becoming the favorite among investors after it avoided rate cuts that wiped out $3.9 billion in the market value of rivals.
The generator — whose $11 billion market value surpassed Cia. Energetica de Minas Gerais, or Cemig; CPFL Energia SA (CPFE3) and Centrais Eletricas Brasileiras SA (ELET6), or Eletrobras, last quarter after ranking fourth since 2004 — gained 8.7 percent in the past year. Shares of Cemig, CPFL and Eletrobras each fell at least 27 percent in the period.
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