SAO PAULO Jan 11 Fundação Cesp, Brazil's
largest private-sector pension fund, is considering the partial
or full sale of a 200 million-real ($62 million) stake it owns
in Vale SA, the world's largest iron ore producer, Valor
Econômico said on Wednesday.
Funcesp, as the São Paulo-based fund is known, is the
smallest member of a group of domestic pension funds that form
part of Vale's controlling bloc. Funcesp has 1.1 percent of
Litel Participações Ltda, an investment vehicle grouping peers
Previ Cauixa de Previdência, Petros Fundação
and Funcef Fundação dos Economiários.
"I think that if the opportunity arises, we could consider,
indeed, selling," Martin Glogowsky, president of Funcesp, told
Valor in an interview. "We would only move towards a sale from
the standpoint of returns."
Glogowsky's remarks come as the agreement that groups Vale's
largest shareholders in a common bloc is poised to expire. The
agreement that created Vale's controlling bloc was written in
1997, when the mining giant was privatized.
A press representative for Funcesp confirmed Glogowsky's
Preferred shares of Vale rose 1.6 percent to 26.58 reais in
early morning trading in São Paulo. The stock has more than
tripled over the past 12 months.
($1 = 3.2172 reais)
(Reporting by Guillermo Parra-Bernal; Editing by Chizu