Vale to Sell $12.8 Billion Shares in Brazil, Abroad
July 3, 2008
July 3rd (Bloomberg) – Cia. Vale do Rio Doce, the Brazilian mining company that is seeking new acquisitions after a bid for Xstrata Plc collapsed this year, filed to sell as much as 421.3 million shares in Brazil and abroad, valued at $12.8 billion.
The sale of up to 256.9 million common shares and 164.4 million preferred shares will take place as soon as tomorrow, Rio de Janeiro-based Vale said today in a statement. The shares are worth 20.5 billion reais ($12.8 billion), based on yesterday’s closing price in Sao Paulo.
Vale said June 10 it planned to sell as much as $15 billion of stock to fund expansion and possible acquisitions. The Rio de Janeiro-based company abandoned a $90 billion bid for Xstrata in March that would have made it the world’s biggest miner.
Credit Suisse Securities LLC will manage the sale, in which international investors may opt to receive American depositary receipts, Vale said. Vale will apply to list its ADRs on the Paris-based Euronext exchange.
Vale preferred shares rose 35 centavos, or 0.8 percent, to 43.75 reais at 10:29 a.m. in Sao Paulo. Common shares fell 6 centavos, or 0.1 percent, to 52.13 reais.