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Thursday, March 31, 2011

New Vale (VALE) CEO May Be Tito Martins Says Local Media

Local Brazilian newspaper, Folha de S.Paulo, reported Vale (NYSE:VALE) will have a new CEO named by Friday, with the name Tito Botelho Martins being identified as the person getting the job.

The newspaper didn't reveal the source they received the information from.

Removing Agnelli could actually be a disaster for the company, as he has helped the company grow exponentially during his tenure, and is only be pressured to be removed because of the socialist Brazilian government which is attempting to tell him how to use the capital of the company.

The government of Brazil has been attempting to remove Agnelli for years, alleging he isn't doing enough for the economic development in Brazil. They want him to use company money to invest in steel mills and infrastructure.

Brazil's government formerly ran Vale as a state-owned business, and apparently still considers itself such, even though they are supposed to be out of the picture.

This will create doubt in investors' minds as to whether they can trust investing in the company if the government is allowed to remove a highly successful leader like Agnelli because he does what's best for the company, its shareholders and its workers.

Vale closed in New York at $32.92, falling $0.05, or 0.15 percent.

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