Temer Said to Seek New Vale CEO in Brazil Shareholder Talks – by R.T. Watson, Anna Edgerton and Cristiane Lucchesi (Bloomberg News – November 18, 2016)

http://www.bloomberg.com/

Brazil’s government has decided to push for a new chief executive for iron-ore giant Vale SA when the current boss’s contract expires next year, according to people with knowledge of the matter.

President Michel Temer ceded to months of lobbying from members of his own Democratic Movement Party to seek a replacement for Murilo Ferreira, who was appointed when Temer’s predecessor was in power, the people said, asking not to be identified because talks are private. His contract ends at the end of April.

While the world’s largest iron-ore miner is an independently run company, it’s controlled by a holding company whose owners include state pension funds and a development bank. The government will try to work with private-sector shareholders including Banco Bradesco SA and Mitsui & Co. to select a new CEO with a strong market background, the people said.

The effort comes as the controlling group works on renewing a 20-year-old pact that will expire about the same time as the CEO’s contract. Vale’s press department declined a request for comment from Ferreira. When asked if he would be willing to remain in the position, Ferreira said that was a matter for shareholders, Estado reported last month. The press office of Brazil’s presidency declined to comment.

Ferreira, who was appointed in 2011 as part of a management shakeup driven by then President Dilma Rousseff, has been in the cross hairs of members of the Democratic Movement Party since Temer took power.

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