Category: People

The dispute over marketing rights held by Swiss commodities trader Glencore – which has a 35% stake in Xstrata – is the main obstacle to an acquisition, Vale CEO Roger Agnelli confirms, according to wire reports. Vale is “not in a rush” to buy Xstrata and is analyzing other options, according to the reports which follow a Webcast conference Friday. The takeover could cost up to $95bn, but the two sides are understood to be moving apart, despite the fact that Vale has already assembled $50bn in financing. Glencore – which turned Xstrata into a global commodities powerhouse in less than six years – has proven a savvy negotiator, making Vale’s bold takeover attempt a difficult and increasingly expensive proposition. The fact that Glencore is selling at all suggests to some analysts that an acquisition might end up being a huge and costly flop for the Brazilian firm.

Mexican housing developer Homex is preparing to enter a new line of business in Mexico, Gerardo de Nicolas Gutierrez, CEO, tells LatinFinance. “We have just launched a new program to build second homes for foreigners in Los Cabos, Puerto Vallarta and Cancun,” said Gutierrez. Homex, the country’s largest developer and the only homebuilder that is traded in New York, is known for building houses that fall within two general price ranges: $18,000-$60,000 houses and $60,000-$300,000 ones. The new initiative will focus on houses worth $200,000-$600,000, and will be largely financed with existing cashflow, says the CEO. The company will work with Mexican banks such as BBVA Bancomer, Banorte and Banamex to develop mortgage products for the foreigners that can be denominated in pesos or dollars. “The number of foreigners coming to Mexico is growing every year, with a large part in the post-retirement stage,” says Gutierrez.

Petrobras has appointed Decio Fabricio Oddone da Costa as CEO of its Argentine unit Petrobras Energia Participacoes. Oddone, who is now international manager for the southern cone, will take the new position February 1. He replaces Carlos Fontes, who will hold a new senior management position in Brazil.

The Bovespa wants to attract more business from non-Brazilian issuers, Gilberto Mifano, the exchange’s CEO, tells LatinFinance. The exchange, which this year went public in a blowout IPO, is planning a more proactive approach and will visit other LatAm markets, says Mifano. He adds that the process will be transparent and in collaboration with exchanges and regulators. “This is not going to be an imperialist process to steal away market share,” says the official. Bovespa attractions that the exchange will look to highlight include access to international investors and better liquidity. “Foreigners are very comfortable buying into Brazilian companies on the Novo Mercado,” says Mifano. He notes that offshore investors purchase 70%-80% of new issues on the Bovespa.

The Bovespa wants to attract more business from non-Brazilian issuers, Gilberto Mifano, the exchange’s CEO, tells LatinFinance. The exchange, which this year went public in a blowout IPO, is planning a more proactive approach and will visit other LatAm markets, says Mifano. He adds that the process will be transparent and in collaboration with exchanges and regulators. “This is not going to be an imperialist process to steal away market share,” says the official. Bovespa attractions that the exchange will look to highlight include access to international investors and better liquidity. “Foreigners are very comfortable buying into Brazilian companies on the Novo Mercado,” says Mifano. He notes that offshore investors purchase 70%-80% of new issues on the Bovespa.

Latin America’s two biggest exchanges – the Bovespa and the BM&F – are not discussing a merger, according to Bovespa CEO Gilberto Mifano. “There are no plans or proposals for anything yet,” Mifano tells LatinFinance, adding that the two sides have not held any talks recently. Bovespa and BM&F were recently rumored to be considering joining forces in the wake of successful IPOs. Prior to both exchanges’ demutualization, talk of a merger was also circulating, but the two ended up choosing to pursue shareholder restructurings and IPOs independently, says Mifano. If set up properly, a union between the two could make sense, notes Mifano, pointing to cases such as the Deutsche Bourse and exchanges in Hong Kong, Australia and Singapore, which integrated their various platforms successfully. The Bovespa went public October 24 via Goldman and Credit Suisse. The BM&F priced its offering November 28 via Morgan Stanley, Bradesco, JPMorgan, Merrill Lynch, Itau BBA, Deutsche Bank and Citi.