(Reuters) May 18, 2011 – Private equity firm Carlyle Group and its Brazilian partner may raise $1 billion with the sale of stock in CVC, a Brazilian tourism company, the newspaper Valor Economico reported.

Carlyle Group and Brazilian businessman Guilherme Paulus plan to sell at least 25 percent of CVC’s shares in a secondary offering in the second half of 2011, Valor reported, citing unnamed sources.
CVC is unlikely to include a sale of new stock to investors through a primary offering as the company has strong cash flow, the newspaper reported, citing one of the sources.

Carlyle owns 63.6 percent of CVC and Paulus owns the rest.

A Carlyle spokesman said neither the group nor CVC could comment on the story.

By Brian Ellsworth and Jeb Blount