CVRD To Buy Back Shares

Brazilian Companhia Vale do Rio Doce (CVRD), the world’s largest iron-ore producer, is to buy back 47.9 million of its preferred shares, representing about 5% of its stock in circulation. CVRD said its decision to launch the buyback program was prompted by the recent share price performance and difference between its common and preferred share prices. Meanwhile, the company managed to stare down Chinese steelmakers to agree a 19% price increase for iron ore following tough negotiations.