Eletropaulo shares rose 5.5 percent at 30.54 reais as European groups Iberdrola and Enel engage in a bidding war for Brazil's largest power distribution company.

Competing bids will be presented in the Sao Paulo stock exchange on May 18, the company said in securities filings over the weekend, with bids to be delivered by 4 p.m. local time (1900 GMT), according to Brazilian stock exchange operator B3 SA.

Three competitors - Brazil's Neoenergia SA, controlled by Spain's Iberdrola, Enel and Brazilian rival Energisa SA - have already bid.

Late on Friday, Neoenergia bid 29.40 reais per Eletropaulo share, topping an offer by Enel of 28 reais per share.

Enel is ready to raise its bid, Newspaper Valor Economico reported on Monday, citing sources.

The Brazilian utility, formally known as Eletropaulo Metropolitana Eletricidade de Sao Paulo SA, separately plans to call off a 1.5 billion reais ($439.51 million) follow-on offer, Valor reported, citing sources.

Eletropaulo's board is expected to announce on Monday if the proposed capital raise will be called off or maintained, the company said in filings over the weekend. Brazilian securities regulator CVM questioned the capital raise on Friday.

Eletropaulo has planned to issue up to 1.5 billion reais in new shares to reduce its debt.

Eletropaulo did not immediately respond to request for comment. Enel declined to comment.

(Reporting by Luciano Costa and Carolina Mandl in Sao Paulo and Jake Spring in Brasilia; Additional reporting by Stephen Jewkes in Milan; Writing by Tatiana Bautzer; Editing by Jeffrey Benkoe and Frances Kerry)