(Recasts, adds details and share performance)
SAO PAULO 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.
Preferred shares, the company's most widely
traded class of stock, rallied 4.6 percent to 32.65 reais, on
top of Friday's 6.6 percent jump, as iron ore prices soared and
on optimism that shareholders will seek to block a political
appointee as CEO. The stock is up 40 percent this year.
The reported tension over the Vale job is the latest sign of
strain between the two biggest parties in Temer's coalition. The
PSDB and some in Temer's PMDB have butted heads over a string of
ministry posts and may run rival candidates in the 2018
Vale was partly privatized in 1997, although the government
continues to wield influence over it through the investment
holding company of state development bank BNDES and
state-controlled pension funds. Bradespar, the funds, Mitsui and
BNDESPar are all members of Valepar SA, which has control of the
(Writing by Brad Haynes; Editing by Guillermo Parra-Bernal and
Lisa Von Ahn)