Sao Paulo Government Eyes Selling 30% Stake in Water Utility (1)

Sao Paulo’s government is inclined to sell a 30% stake in Latin America’s largest water utility when it’s privatized, according to a person familiar with the negotiations.

Legislators approved a public share sale for Cia. de Saneamento Basico do Estado de Sao Paulo, known as Sabesp, in December and the government must now decide how much of its controlling 50.3% stake to divest. While discussions are still ongoing, the person said consensus seems to be building around keeping about 20% of the company in state hands.

Shares in Sabesp fell by as much as 1.3% on Monday, before paring ...