UPDATE 1-Key Vale partners want to keep CEO to stem political pressure -Valor (Reuters U.S. – February 13, 2017)


Feb 13 Vale SA’s top non-government shareholders want Chief Executive Officer Murilo Ferreira in the job for another two years to stem pressure from Brazilian politicians to appoint an ally at the helm of the world’s No. 1 iron ore producer, newspaper Valor Econômico said on Monday.

Valor, which cited unnamed people familiar with the matter, said some members of Vale’s controlling bloc were considering voting for the renewal of Ferreira’s term when it expires next quarter. Bradespar SA and Japan’s Mitsui & Co are the private-sector members of the bloc.

Valor said members of President Michel Temer’s PMDB party and Senator Aecio Neves of the PSDB party from the mineral-rich Minas Gerais state, where Vale is based, were vying to influence the selection of the new CEO. Such disputes have gone on for months, Valor said.

In January, Reuters reported that shareholders led by Bradespar and pension fund Previ Caixa de Previdência could propose Ferreira stay on for at least another year as part of discussions over a new shareholder accord. His term expires midway through the second quarter.

Vale’s media representatives declined to comment on the Valor report. Representatives for Neves, Andrade and Temer did not immediately respond to requests for comment.

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