BRASILIA, Nov 22 (Reuters) - Shares in Brazilian power company Cemig plunged on Wednesday on the possibility that the firm, controlled by the state of Minas Gerais, would be transferred to the federal government.
Minas Gerais Governor Romeu Zema agreed on Wednesday on a plan proposed by Senate leader Rodrigo Pacheco to pay his state's debt to the country by passing the ownership of its controlling stake in firms such as Cemig, Copasa and Codemig to the federal government.
Pacheco later told journalists that his meeting with Zema was positive and the governor then met with Finance Minister Fernando Haddad to discuss the matter.
In a separate interview after leaving the meeting with Haddad, Zema said he expected the issue to be resolved in the first quarter of 2024. He stressed, however, that nothing had been decided yet regarding Cemig's "federalization."
Shares in the firm sank 10.7% in late afternoon trading on the Sao Paulo stock exchange, paring losses from a 15% drop earlier. Copasa shares also dipped some 3%. (Reporting by Maria Carolina Marcello and Victor Borges; Editing by Will Dunham)
