China Southern Power Grid Co., Ltd is considering a bid for a stake in Compañía de Transporte de Energía Eléctrica en Alta Tensión Transener S.A. (BASE:TRAN) (Transener) that could fetch about $400 million, according to people with knowledge of the matter. State Grid China Co., Ltd. has also been invited to make an offer for the Argentine government's indirect holding of about 26% of Transener, the people, who asked not to be identified because the information is private, said. The government, which announced its intention to sell in January, is also asking local suitors to bid, one of the people said.

Shares of Transener, jumped as much as 9.2%. Integración Energética Argentina SA and Pampa Energía S.A. (BASE:PAMP) each own half of a company that has a 52.7% stake in Transener. Pampa, which has a first right of refusal, is unlikely to seek to change the size of its holding in Transener, an official at the company said.

Representatives for China Southern Power and State Grid didn't immediately respond to requests for comment. Representatives for the Argentine government and Transener's other investors declined to comment. A Transener official declined to comment.