Vale Holders Aim to Replace Angelli

Valepar, the controlling shareholder of Vale, has hired a headhunter to find a new CEO for the Brazilian miner, it says in an announcement Friday. The announcement confirms long-standing market rumors that shareholders were unhappy with current chief Roger Agnelli. Agnelli’s term expires in May, and Brazil’s government has criticized him for not having spent enough on Brazilian projects. Brazil’s government holds direct and indirect stakes in Vale, and has argued that Agnelli should invest more in areas such as steel, shipbuilding and fertilizer in order to create jobs in Brazil. Government-related pension funds Funcef, Previ, Petros and Funcesp own 49% percent of Valepar, with other holders including the BNDESpar investment unit of government development bank BNDES. Apart from these stakes, the government also owns 12 “golden shares” in Vale that give it veto powers over certain key decisions including changing the location of the company´s headquarters or its corporate purposes.