Today the Cabinet is expected to decide on the form of privatization of its 51% stake in CT at a regular meeting. The options are i) a direct sale that would trigger a public bid for the entire free float; ii) a market placement that we believe is largely priced in and still the most likely outcome; iii) a delay in the decision that could be interpreted by the market as preparation for a direct sale in Q1 2005; this last outcome would likely push the stock higher. We reiterate our view that CT is more likely to be sold on the market.
Emilia Zampieri, Patria Finance