The student requests an evaluation for Rio Light, a Brazilian company that is owned by the state power and March 1996, sold produce. If successful, the $ 2 billion in privatization would bring to the Brazilian treasury. But the success was far from assured. Members of the financial community suggested that the minimum bid for the upcoming auction was set too high, especially since the lack of regulation before privatization and the underlying volatility of investment in Brazil. Elena Landa … Read more »

The student requests an evaluation for Rio Light, a Brazilian company that is owned by the state power and March 1996, sold produce. If successful, the $ 2 billion in privatization would bring to the Brazilian treasury. But the success was far from assured. Members of the financial community suggested that the minimum bid for the upcoming auction was set too high, especially since the lack of regulation before privatization and the underlying volatility of investment in Brazil. Elena Landau attempt to solve the crisis was a renegotiation of the terms of the sale. Immediately worked financial investors and strategic investors such as Shuler Steve of Houston Industries Energy, to incorporate the changed conditions in their valuation models to determine whether Rio light was desirable. Time was short and billions of dollars were at stake.
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Alexander Dyck
Source: Harvard Business School
21 pages.
Release Date: 19, March 2002. Prod #: 702 055 PDF-ENG
Price of Light: Privatization, regulation and assessment in Brazil HBR case solution