UPDATE - No new bids for Eletropaulo as court changes rules

Brazilian power distributor Eletropaulo (BVMF:ELPL3) did not receive new bids from its existing suitors on Thursday because a court order changed the rules for the bidding process, it was announced.

The future owner of the company will still be chosen on June 4, when existing bidders Neoenergia SA and Enel Brasil Investimentos Sudeste SA could face additional competition.

The respective units of Spain’s Iberdrola SA (BME:IBE) and Italy’s Enel SpA (BIT:ENEL) were initially supposed to make final bids for Eletropaulo on May 24 and then participate in the auction scheduled for next month. However, a person with knowledge of the matter told Reuters that Neoenergia thought the previous scheme was unfair given that potential third-party suitors were not required to disclose their strategy beforehand, as were Neoenergia and Enel Sudeste. The May 24 deadline has been cancelled by court and now all parties will make offers in June.

The latest bids by the two companies are BRL 32.1 and BRL 32.2 per share, respectively. Enel has estimated that the transaction could cost up to BRL 5.4 billion (USD 1.48bn/EUR 1.26bn) in total.

(BRL 1.0 = USD 0.274/EUR 0.234)

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