Vale’s recently proposed shareholders’ agreement, which is expected to be voted on this June, is being threatened by a US fund that owns 18 percent of the iron ore producer’s preferential shares.
According to a media report from Brazilian newspaper O Globo, Vale’s proposed shareholders’ agreement was not welcomed by US fund Capital Group. Vale’s proposed agreement took five years to be designed and is reportedly at risk.
The media report said Capital Group didn’t agree with the exchange value of Vale’s preferential shares, which would be replaced by Vale’s common shares. Vale’s common shares give investors voting power.
Under the terms of the proposed agreement, Vale would need at least 54 percent of the votes of the company’s shareholders to approve it.
Vale said the new proposed shareholders’ agreement, if approved, will allow it to list its shares in the Brazilian stock exchange BM&FBOVESPA’s Novo Mercado special segment.