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AES Corp to buy part of BNDES' stake in Brazil's AES Tiete

Brazilian development bank BNDES has agreed to sell part of its stake in power company AES Tiete SA to AES Corp, it said in a filing on Tuesday.

Adds detail, Eneva comment

SAO PAULO/BRASILIA, July 28 (Reuters) - Brazilian development bank BNDES has agreed to sell part of its stake in power company AES Tiete SA TIET11.SA to AES Corp AES.N, it said in a filing on Tuesday.

AES Corp offered to buy 65% of BNDES' stake in AES Tiete for 17.15 reais ($3.33) per share, fully in cash. The sale will reduce BNDES' stake in the company to 9.9% from 28.41%.

Besides AES Corp's offer, BNDES and all AES Tiete's shareholders had received a merger proposal from power company Eneva SA ENEV3.SA involving cash and shares.

Shares in AES Tiete rose 7% on Monday as the bidding war between AES Corp and Eneva intensified, their biggest rise in three months. That followed a 9% slump on Friday, the biggest fall in over four months.

Eneva issued a statement on Tuesday saying it will "continue to work on generating value to its shareholders, focused on the development of its business plan and always attentive to opportunities that represent the best interest of all its shareholders and stakeholders."

($1 = 5.18 reais)

(Reporting by Carolina Mandl and Jamie McGeever; editing by Jason Neely and Susan Fenton)

((carolina.mandl@thomsonreuters.com; +55 11 5644 7703; +55 11 97116-3806;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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