UPDATE 2-Brazil’s Eletrobras mulls U.S. purchase–executive

* Official says company analyzes 11 possible targets

* Eletrobras seeks minority stake, Gama says

* Expects 10 pct of revenue from abroad by 2020
(Adds comments, details from paragraph 4; updates shares)

RIO DE JANEIRO, July 26 (BestGrowthStock) – Eletrobras (ELET6.SA: ),
Brazil’s state-owned electricity holding company, is
considering buying a minority stake in a U.S. utility as it
seeks to expand overseas, Sinval Gama, the company’s head of
international operations, said on Monday.

The company is currently analyzing 11 possible investments,
among power generators and transmitters, Gama told reporters on
the sidelines of an industry event in Rio de Janeiro. The
company expects to generate about 10 percent of total revenue
from overseas operations by 2020, he said.

Eletrobras has signaled repeatedly it wants to expand in
Latin America by participating in auctions and partnering with
other companies to diversify its revenue sources. The U.S.
acquisition could take place before the end of the year.

“We understand that the United States economy is to expand
significantly and we want to enter a mature investment,” Gama
said.

He did not mention any targets.

Expansion might help counter problems in Brazil related to
the low price of energy in the wholesale market, high
operational costs and uncertainty over the renewal of licenses
before 2015. Such issues will probably hamper Eletrobras for
years to come, according to a recent Banco Santander report.

Eletrobras controls more than 80 percent of energy
generation in Brazil and is a large player in transmission and
distribution. In 2008, it received congressional approval to
expand beyond Brazil’s borders, underscoring the nation’s wish
to use its state companies as vehicles of consolidation and to
revenue creation in other markets.

The state-controlled company expects to start ventures in
Argentina, Peru and Nicaragua that could add 6,000 megawatts in
generation capacity over the coming years, Gama said.

The company’s shares fell 0.2 percent to 26.84 reais each
on Monday.

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(Reporting by Denise Luna; writing by Guillermo Parra-Bernal;
editing by Andre Grenon)

UPDATE 2-Brazil’s Eletrobras mulls U.S. purchase–executive