Vale considering $15B US stock issue
Three-month Vale trading on the NYSE
The Brazilian company that bought Canadian mining giant Inco in 2006 is considering a $15 billion US stock issue, it said Tuesday.
Vale (Companhia Vale do Rio Doce, or CVRD) said the money would be used to support its $59 billion US internal growth plan or acquisitions, if the proposal received board approval.
But Vale said that "currently, it is not negotiating any strategic acquisition."
Vale stock fell $1.57 to $35.25 US in trading on the New York Stock Exchange. The stock has traded between $17 US and $44.15 US in the past year.
Vale said senior management has approved the share issue and it will take the proposal to the board. It didn't say when.
The issue could include common shares and class A preferred shares, to a maximum $15 billion US.
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