>> When you're Brazil and you're coming out of the worst recession ever and facing down the biggest budget deficit on record, the options are few. So Brazilian president Michel Temer taking a bold step Tuesday, moving closer to selling off government control of the country's biggest power company, Eletrobras.
The plan is being hailed as a major step according to Reuters finance correspondent in Sao Paulo, Guillermo Parra-Bernal.>> It's not only a symbolic move, but it's also a breakthrough. The significance of this is basically the fact that Brazil is trying to abandon decades of a growing estate and a policy of building up national champions and huge estate companies towards a where the private sector plays a bigger role in the economy.
>> But there's more than just government do-gooding occurring. It's hoping to make more than $6 billion on the sale which includes the government's 41% stake in Eletrobras.>> More than getting out of the power utility business, what the Temer administration is trying to do is just to, number one, raise cash in order to reduce the state's blatant budget deficit.
Number two, optimize the use of resources. By this, I mean trying to allow the private sector to invest more in the country's energy infrastructure.>> Something that is much needed. Eletrobras, for example, has struggled for years with high debt and poor operations. Two things it didn't have the cash to address.
Investors, hoping that's now about to change if private money does step in, furiously bought shares of the Brazilian company. The stock skyrocketing almost 50% in Tuesday trade on the New York Stock Exchange.