EBR - Brazil's lower house clears path to Eletrobras privatization

Eletrobras ([[EBR]] -1.7%) opens lower after Brazil's lower house late yesterday approved a bill to privatize the state power utility; shares rose nearly 4% yesterday in anticipation of the lower house approval.The bill now heads to the Senate, where it needs to be voted before expiring on June 22.Under the terms of the bill, Eletrobras will sell new shares to investors, diluting the stake of the government, which will lose its controlling interest in the company.Bank of America analysts reiterate their Buy rating, citing attractive valuation and potential upside from privatization.Eletrobras recently selected Rodrigo Limp Nascimento, Brazil's electric energy secretary of the Ministry of Mines and Energy, as its new CEO.

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Brazil’s lower house clears path to Eletrobras privatization