Price of Light: Privatization Regulation and Valuation in Brazil Harvard Case Solution & Analysis

Asks the students to make estimates for the Rio-Light, a Brazilian energy company, which is owned by the state and will be available in March 1996. If successful, the privatization will bring in more than $ 2 billion in the Brazilian Treasury. But success is far from assured. Members of the financial community have suggested that the minimum rate set for the upcoming auction was too high, especially given the lack of regulation to privatization and major volatility investment to Brazil. Helen Landau attempt to solve the crisis was the revision of the conditions of sale. Immediately, financial investors and strategic investors such as Steve Schuler Houston energy sector have been working to incorporate the revised terms in the model evaluation to decide whether the Rio World was justified. Time was short, and billions of dollars were at stake. "Hide
by Alexander Dyck Source: Harvard Business School 21 pages. Publication Date: March 19, 2002. Prod. #: 702055-PDF-ENG

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