How would you like Dilma, Mategna and PT to run Vale?

Rumors that Brazilian federal government aims to replace Roger Agnelli, Vale’s CEO, have been surrounding the market for a long time. Yesterday, minister Guido Mantega, representing the Federal government as one large shareholder, officially requested Bradesco, another large shareholder, the substitution of Roger Agnelli as Vale CEO, according to Estado broadcast agency.

Roger Agnelli, Vale's CEO

Supposedly, the government wants Vale aligned to its policies.  According to Bank Banif, ” the Government wants to have a company, in which it does not hold control and with a majority of private investors, to follow its directives.” Is it a good thing for the company and for the country?

The company

Vale was a state-owned company from 1942 to 1977, when the control was sold to Valepar, which holds 52.7% of voting shares. Valepar shareholders are Littel (78.4% voting stake, controlled by Banco do Brasil), Bradespar (21.2% stake, controlled by Bradesco), Mitsui (18.2% stake) and the BNDES (11.5% stake, controlled by the Federal Government).

Vale is the subject of my master in history. It is funny because for the last 2 months I have been looking into the company’s privatization and the role of the state. Well, what do I think..? to be continued.. (but please take 2 seconds and share your view with us below)

Advertisements

About Hildete Vodopives

Hildete de Moraes Vodopives is founder of Brazil Global and of the Harvard Strategists Bureau. She is a member of the Brazilian Investment Analysts Association (APIMEC-Rio) where she served as Corporate Relations Director and later, on the board. Hildete advises companies doing business in Brazil. She lives between Paris and Rio and is a member of the Harvard Club of Paris and of the Mercosur Women’s Forum.
This entry was posted in Brazil, Politics and tagged , , , , , , , , , . Bookmark the permalink.

2 Responses to How would you like Dilma, Mategna and PT to run Vale?

  1. Any time any government has maintained control of any business — whether Brasil, Venezuela, Cuba, Greece, Italy, Ireland or the United States — they have only proven they can gum up a grease factory… Good intentions and $5 will always get you a cup of java at any coffee shop…

    Like

  2. Nicholas says:

    The government’s priority is to promote national development, something that doesn’t happen at all here in the US (what is a shame). Anyway, back to Brazil…One of the reasons Agnelli is so disliked is that he took the decision to build a fleet of ships in East Asian instead of Brazil due to cost reasons. As a private company, Vale has a right to choices such as that one ….but if it still wants to take loans with subsidized rates from Brazilian public banks, it better act for the Brazilian public good. National development of the steel industry is also good for the Brazilian shipyard industry that is on the right path. the outlook for the Brazilian naval industry is moving to a better place (see 2nd link below). And the govt has a powerful weapon, public banks, to persuade private enterprises to keep investing locally.

    tinyurl.com/4kgj8be
    tinyurl.com/69ldxta

    Like

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s