| FLORIANOPOLIS, Brazil
FLORIANOPOLIS, Brazil Caixa de Previdência dos Funcionários do Banco do Brasil is inclined to accept State Grid Corp of China's bid for CPFL Energia SA (CPFE3.SA), an electricity utility in which Brazil's largest pension fund has a 29.4 percent stake, Chief Executive Officer Gueitiro Genso said on Tuesday.
Previ [PREVI.UL], as the retirement for workers of state-controlled Banco do Brasil SA (BBAS3.SA) is known, may exercise the option to sell the 7.5 billion-real ($2.3 billion) stake by early October, Genso said in an interview. State Grid made a proposal in July to buy control of CPFL for 25 reais a share.
Reuters reported on July 19 that Previ was inclined to accept State Grid's offer. According to people with direct knowledge of the matter, Genso and Paulo Rogêrio Caffarelli, the CEO of Banco do Brasil, have discussed the matter and agreed that a sale was convenient for the fund.
On July 1, State Grid, the world's largest utility, agreed to buy Brazilian infrastructure and industrial conglomerate Camargo Correa SA's 23.6 percent stake in CPFL for 5.9 billion reais.
Under terms of a shareholder accord, State Grid had to extend the same offer to other shareholders, including Previ and an investment vehicle called Bonaire - which has four other state-run pension funds.
A decision by Previ to exercise State Grid's proposal could lure other state funds into the deal and trigger a buyout of minority shareholders. Previ manages about 170 billion reais ($52 billion) in Banco do Brasil worker savings.
($1 = 3.2690 Brazilian reais)
(Reporting by Aluísio Alves; Writing by Guillermo Parra-Bernal; Editing by Cynthia Osterman)