(New throughout, adds Funcesp comments)
SAO PAULO Jan 11 Fundação Cesp, Brazil's
largest private-sector pension fund, said on Wednesday it is not
currently holding discussions over 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.
The fund issued a statement after newspaper Valor Econômico
published an interview in which Funcesp President Martin
Glogowsky said a potential sale would be gauged if it proved
advantageous for the fund.
The statement, issued after the interview was published,
said Funcesp "has no need for such liquidity."
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.
"The opportunity could be analyzed if it were advantageous
at some point, just as the fund does with other assets in the
investment portfolio," the statement said.
Glogowsky's remarks to Valor came just 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.
Preferred shares of Vale jumped 2.8 percent to 26.91 reais
in late afternoon trading in São Paulo, reaching the highest
level in a month. The stock has more than tripled over the past
($1 = 3.2172 reais)
(Reporting by Guillermo Parra-Bernal; Additional reporting by
Bruno Federwoski in São Paulo; Editing by Chizu Nomiyama)