Vale’s CEO Fabio Schvartsman has criticized the Brazilian government’s influence and participation in the company as a shareholder.
Schvartsman said the government’s participation in the company as a shareholder has a “terrible potential for value destruction.”
The executive told Empiricus Research that Brazil saw a lot of unfortunate examples where the presence of the state had a terrible potential to destroy a company’s value.
“If we promote this conversion massively, we will dilute the current controlling shareholder group, reducing the government’s influence [at Vale] in a dramatic way,” the executive said, while referring to the company’s proposed restructuring.
Vale proposed earlier this year a corporate restructuring under which it expects to transform Vale into a company “without a defined control,” or a controlling shareholder.